Bear Market
A bear market is a prolonged period of declining prices, typically defined as a 20% or greater drop from recent highs. Bear markets are characterized by pessimism, reduced trading activity, and widespread capitulation. They can last months to years.
Understanding the Concept
• Usually triggered by economic downturns or major negative catalysts • Rallies within bear markets (bear market rallies) often trap buyers • Historically, bear markets are shorter than bull markets • Creates opportunities for long-term investors to accumulate
Real-World Example
From November 2021 to November 2022, Bitcoin fell from $69,000 to $15,500, a 77% decline. This crypto bear market saw multiple rallies to $48K and $32K that ultimately failed. Investors who bought the "dip" early got crushed. Those who waited for capitulation signals accumulated at much lower prices.
How Strykr Helps
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