What is a bear market in crypto?Market correction vs. bear marketA market correction is a short-term price pullback after the price has risen too quickly.
Corrections almost always occur when the economy is expanding, as investors become overconfident and push asset prices too high, which sets the stage for a"reversion to the mean" as corrections bring prices back to more realistic levels.Stock market corrections usually happen every two years, but since the crypto market is more volatile, price corrections tend to occur more frequently.
FOMO : When investors see prices rising quickly, they may jump into the market without proper research, thereby creating a self-fulfilling prophecy where prices continue to increase simply because more people are buying. Cryptocurrency pullbacks mean the temporary reversal will only stop, increase or decrease in value for a brief period, after which the asset's value will return to its original behavior.A bear market is a prolonged period of falling prices, usually accompanied by widespread pessimism.
There have been 14 bear markets in the US from 1947 to 2022. Generally, the average length of a bear market can range from one month to 1.7 years, according to Investopedia.for an average of ten months, give or take. However, there have been a few instances where bear markets have lasted much longer. For example, the"Crypto Winter" crash of 2013 to 2015 lasted 415 days or a little over a year.Can you make profits in a bear market? The answer is yes.
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