Understanding a bear market.

[wxa7115]

Bear market is not that bad nor can it be avoided, I see it as a way of cleaning up the space for a healthier market, an opportunity for new investors to buy at a reasonable price, anyone in crypto should always be prepared for this period and also understand it won't last forever, bull and bear both have a time frame.

Exactly, if we take a look at nature this is similar to what we see with a forest fire, many people get upset about this but if it happens naturally then that just meant there were many old trees that were about to die anyway, the forest fire opens space and opportunities for new trees to take their place and keep the forest alive.

This is the same, people hate bear markets but it is a filter, those that can survive a bear market become better investors and get the profits from the next bull market while bringing new blood to the market as well, so while I can understand why people are mad when they see a decreasing price they must also try to make an effort to appreciate the good it brings over the long term as well.

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[teosanru]

Because the market is highly unpredictable and moves with trends, different market conditions can result from different trends such as – A remark from an influential individual or a political decision that prompts a certain kind of action among other large, medium and small HODlers.

 If it is a positive market trend, it will result in a good market condition that may cause a “bull run”. If it is a negative market trend, it may cause investors to become bearish and some may quickly liquidate their crypto assets or convert to another coin for safe keep.  This action will cause a temporary or a slightly prolonged decrease in the value of a crypto and if this slump in price continues to like 10-20% from its former ATH, it is said to be a “bear market” somewhat close to what we are experiencing currently.

When there is a bear market, it is often common to hear among crypto enthusiast to “buy the dip”. Though it is a very profitable strategy or scheme to buy the dip and wait for the surge, the probability of loosing is not completely eliminated as the dip can get deeper afterwards and you run into looses even after buying the dip.

The aim and objective of this topic is to point out some strategy and key things to remember during a bear market in order to safeguard your portfolio. Some are;

(1)  Waiting and trying to pick a point in the dip that you believe is the bottom before investing is very risky as the point you pick might not be the bottom, perhaps just the top of the bottom. Adopting the strategy of investing specific amounts of money into your portfolio over time is advised. This ensures and helps you to avoid the temptation of putting all your money into a portfolio with no certainty.

(2) There is usually a lot of fear among HODlers of cryptocurrency during a bear market, it is very important that investors/HODlers during this period should think long term, because the temptation to sell will be there.

(3)  if you are too bearish and don’t have the confidence to remain in the market, simply convert all your portfolio to a stable coin or cash and wait for the market to recover before you join back in.

References
https://academy.binance.com/en/articles/what-is-a-bear-market
https://www.nerdwallet.com/article/investing/how-to-invest-during-a-bear-market

To the best of your understanding, feel free improve on this topic

Another important thing I can add here is short selling. Some people especially those who have always traded in spot. There is a magical feature of short selling available in futures trading. If you want to earn money in this bear run open your futures account but make sure you don't take any leverage. Trade on long and short just like a normal spot trade. Don't leverage at all and you'll be able to earn in this type of market too. Basically the idea is to always trade with the trend. Spots trading won't give you that features which is why most traders turn into investors during bear run but the better way out is short selling

[The Sceptical Chymist]

Bear market is not that bad nor can it be avoided, I see it as a way of cleaning up the space for a healthier market, an opportunity for new investors to buy at a reasonable price

Sure, they're not that bad if you don't have much invested in the market (or are a short-term trader).  But if you're a long-term holder of bitcoin, stocks, gold, or whatever, bear markets can be tough.  Have you ever been through one before when you've had money tied up in assets that were going through one?  I have, and it sucks.

That said, there's certainly a bearish vibe in the crypto market at present, but I'm not entirely convinced we're in or headed for a sustained bear market, one where prices decline 20% or more over a period of months (though the drop of nearly 50% that we've seen in bitcoin as of late doesn't bode well for it).  There's a chance that this is simply a massive selloff which could be followed by a period of rapid recovery.  That's what I'm hoping for, anyway.  I'm prepared for anything since this is bitcoin we're talking about.  It's an asset that's at least as volatile as any stock traded on the NASDAQ and it could do anything in the future.

[Review Master]

Bear market! We're still far from it and this type correction is nothing though those points are good for those who are panic sellers and didn't face the previous bull as well as bear market. BTW, we'll get this type of correction more in the upcoming months as instituational investors or big whales always try to manipulate this market so that  weak hodlers can left this and it becomes more mature market with diamond hand hodlers. Also one thing we shouldn't do on any case whatever it's bear or bull market and that is: "Never buy with full capital and always try to accumulate in parts to avoid major correction". 

[Oceat]

I am very bullish even though the market is most likely to have a bearish trend but the strong support of $30k suggest that we are still bullish. This price correction is just temporary and since I'm bullish there's a high chance that Bitcoin would break another ATH within this year or maybe not but we're not gonna go down below $30k because it will trigger a bearish trend.

Bear market is just part of the system that could also help to enter the new investors and to increase Bitcoin adoption. Someone is dropping hard at the market but it's still trying to recover and that's the buyers of those who dump their investment. So, I believe bear market is nowhere yet if we based the price of the market last year this is still bullish.

[GeorgeJohn]

Bear market is not that bad nor can it be avoided, I see it as a way of cleaning up the space for a healthier market, an opportunity for new investors to buy at a reasonable price, anyone in crypto should always be prepared for this period and also understand it won't last forever, bull and bear both have a time frame.

Actually when we said that we are into cryptocurrency bear market currently, I don't think is untrue, because Market of all the crypto is going downtrend and about 30% or 20% of cryptocurrency decrease in value within interval or period of time, which can be evaluates within the specific of 7days or 10days decrement in market values, so for we to understand a bear market currently is very simple, because the occurrence of downfall of Market took unaware and it will rise unexpectedly, and thinking about it wisely, bear market does not affect only cryptocurrency, it can affects commodities and real States business, so it's something that happens generally, and anytime it can occurs in any sector of business life.

[DigitalFox]

This price correction is just temporary and since I'm bullish there's a high chance that Bitcoin would break another ATH within this year

Ah, we're all set then, nothing to worry about  However, I find it a bit hard to call 50% price reduction a correction.

[Viscore]

I am very bullish even though the market is most likely to have a bearish trend but the strong support of $30k suggest that we are still bullish. This price correction is just temporary and since I'm bullish there's a high chance that Bitcoin would break another ATH within this year or maybe not but we're not gonna go down below $30k because it will trigger a bearish trend.

Bear market is just part of the system that could also help to enter the new investors and to increase Bitcoin adoption. Someone is dropping hard at the market but it's still trying to recover and that's the buyers of those who dump their investment. So, I believe bear market is  nowhere yet if we based the price of the market last year this is still bullish.

Theres is a big difference when it comes to bitcoin value with today's bearish season compared the previous one. Since there are big institutional investors that have supported bitcoin today, its value won't drop down easily to its deepest dip unlike last 2017, the bearish season has made bicoin value drop into even $3k.

With the unpredictable crypto market we have, we should always be ready and be prepared when bearish season comes because its definitely inevitable. Just simply understanding the market will make us not fall into losses.

[AndySt]

Dude, we not in a Bear market.. we are being sabotaged by a group of Chinese with a vengeance against one of their rival Whales. Also a Chinese government with a hidden agenda, namely to sabotage all other Crypto currencies.. in favor of the "soon to be released" Yuan coin.
This was a strategic move from the Chinese government and a couple of whales to seriously damage Bitcoin's price. I hope the people who are buying those coins that was dumped by these people, will hold onto them ...to keep them out of the people's hands that wants to manipulate Bitcoin's price.  

Whatever the reasons for this stimulant decline in price will still be called Bearish.  The beginning of the word Bearish was used because a bear (bear), will attack using its paws with a movement from top to bottom, describing market conditions when there are many sales which make the market decline or weaken, aka bearish.  So that in recent weeks the crypto market has indeed been in a bearish situation which is quite unsettling for investors who have bought at the top of the price.  Market cap alone in 24 hours has lost 200 B USD.  This will happen long enough for those who can not stand it will definitely cutloss soon.

All questions are in the terminology, but I agree that the level of the current correction is caused to a greater extent by the actions and statements of representatives of the Chinese authorities, so it is still worth waiting for some time after the Chinese holders of bitcoin get rid of their bitcoins and then it will be possible to argue whether the market is bearish or it was just a strong collapse due to bad news. In my humble opinion, the previous increase in the exchange rate of bitcoin and other cryptocurrencies was too sharp and unstable and a correction was inevitable, which happened, and then Chinese statements were superimposed on this correction.

[Reatim]

I am very bullish even though the market is most likely to have a bearish trend but the strong support of $30k suggest that we are still bullish. This price correction is just temporary and since I'm bullish there's a high chance that Bitcoin would break another ATH within this year or maybe not but we're not gonna go down below $30k because it will trigger a bearish trend.

Bear market is just part of the system that could also help to enter the new investors and to increase Bitcoin adoption. Someone is dropping hard at the market but it's still trying to recover and that's the buyers of those who dump their investment. So, I believe bear market is  nowhere yet if we based the price of the market last year this is still bullish.

Theres is a big difference when it comes to bitcoin value with today's bearish season compared the previous one. Since there are big institutional investors that have supported bitcoin today, its value won't drop down easily to its deepest dip unlike last 2017, the bearish season has made bicoin value drop into even $3k.

But the question is , do these Institutional investors are really here to Keep the value strong and not just to help manipulators in their actions?

Like Tesla , we thought that this will empower the crypto specially bitcoin but what does happened?

With the unpredictable crypto market we have, we should always be ready and be prepared when bearish season comes because its definitely inevitable. Just simply understanding the market will make us not fall into losses.

Even how we try to figure out and understand the market, but if there are Born Manipulator , then all our effort will have no sense at all.
Because no matter what happened they will always run after making money and comes back to fool people again and again.

[wahyu wida]

Dude, we not in a Bear market.. we are being sabotaged by a group of Chinese with a vengeance against one of their rival Whales. Also a Chinese government with a hidden agenda, namely to sabotage all other Crypto currencies.. in favor of the "soon to be released" Yuan coin.
This was a strategic move from the Chinese government and a couple of whales to seriously damage Bitcoin's price. I hope the people who are buying those coins that was dumped by these people, will hold onto them ...to keep them out of the people's hands that wants to manipulate Bitcoin's price.  

Whatever the reasons for this stimulant decline in price will still be called Bearish.  The beginning of the word Bearish was used because a bear (bear), will attack using its paws with a movement from top to bottom, describing market conditions when there are many sales which make the market decline or weaken, aka bearish.  So that in recent weeks the crypto market has indeed been in a bearish situation which is quite unsettling for investors who have bought at the top of the price.  Market cap alone in 24 hours has lost 200 B USD.  This will happen long enough for those who can not stand it will definitely cutloss soon.

All questions are in the terminology, but I agree that the level of the current correction is caused to a greater extent by the actions and statements of representatives of the Chinese authorities, so it is still worth waiting for some time after the Chinese holders of bitcoin get rid of their bitcoins and then it will be possible to argue whether the market is bearish or it was just a strong collapse due to bad news. In my humble opinion, the previous increase in the exchange rate of bitcoin and other cryptocurrencies was too sharp and unstable and a correction was inevitable, which happened, and then Chinese statements were superimposed on this correction.

China's statement seems to be in order with Ellon's statement, so that seems to add to the downside of the current market bearish list. many people experience fear which adds to this downturn. This kind of thing happened in 2018, and I think it will improve too. therefore, as investors in particular we have to be patient

[lienfaye]

If only we can pin point the bottom of the market then probably most of us are rich now for buying in dip. But we need to take risk, as long as you didnt buy when the price is soaring high its a good timing already to hold and wait for the time to take profit.

Ah, we're all set then, nothing to worry about  However, I find it a bit hard to call 50% price reduction a correction.

Just stay positive and forget for a while your crypto, this way you can refrain yourself from wondering for how long we're going to wait before the bullish market takes place again. Its better to become bullish and ignore the negative news and fud surrounding crypto, it cant help you to think wisely on whats best decision to do right now.

[peter0425]

Bear market is not that bad nor can it be avoided, I see it as a way of cleaning up the space for a healthier market, an opportunity for new investors to buy at a reasonable price, anyone in crypto should always be prepared for this period and also understand it won't last forever, bull and bear both have a time frame.

Exactly, if we take a look at nature this is similar to what we see with a forest fire, many people get upset about this but if it happens naturally then that just meant there were many old trees that were about to die anyway, the forest fire opens space and opportunities for new trees to take their place and keep the forest alive.

Well not bad example since forest fire sometimes happened because of the abused from people and not totally by Nature.

and also because of the climate change that made by humans this happen often nowadays compared to the past.

This is the same, people hate bear markets but it is a filter, those that can survive a bear market become better investors and get the profits from the next bull market while bringing new blood to the market as well, so while I can understand why people are mad when they see a decreasing price they must also try to make an effort to appreciate the good it brings over the long term as well.

And that is also the reason why there is a Bear and Bull market , this shows the health of a Market .

there must be no continues bear nor bull but evenly.

[Yatsan]

Bear market is a turning point in time in the market wherein declination or correction happens on which how an individual will take the market situation matters whether he will keep going or get into panic doing cut loss just to be able to save his capital based on what he have assessed. But for those people who have already stayed in the market for that long, market can be seen as an opportunity to take advantage of the situation grabbing valuable crypto at its bottom price and hodl while waiting for it to bounce back. Bear market can be an implication to see those who are new from the oldies and those who have weak hands to those who take courage on holding and for those short term traders from the long ones.

[elziw]

You don't have to make a single choice as when to buy, the best strategy is to spend small amounts and spread the trades, for instance if you buy every week for 100$ while the market is crashing you can make sure that you are not putting all your money on one go... 

[TheUltraElite]

You don't have to make a single choice as when to buy, the best strategy is to spend small amounts and spread the trades, for instance if you buy every week for 100$ while the market is crashing you can make sure that you are not putting all your money on one go... 

Yes that is what people advice, but in reality how many traders actually perform this exercise should be put to check. Buying at set points as the market crashes give you more chances to sell when it goes back up and you close that position, borrowing that term from Margin trading.

China's statement seems to be in order with Ellon's statement, so that seems to add to the downside of the current market bearish list. many people experience fear which adds to this downturn. This kind of thing happened in 2018, and I think it will improve too. therefore, as investors in particular we have to be patient

Let not jump to theories but move with the market. Currently it has dropped from a bubble which is why the crash happened at more than 10% from ATH. Basic need now is to build up support levels over these ranges that were touched - 35k to 40k first. This never happened in the last four months - which is the reason for the situation today.

Dont be jealous at how much they may have made, rather identify your own mistakes and correct them. This is lacking in every human, we tend to brush aside the mistakes like not selling at the new highs, even in smaller amounts.

[perfect999]

Timed investment or Dollar Cost Averaging is the best way to invest. You can be doing this with a small amount and without minding how much the price of the cryptocurrency is going to be really helpful. If you can be doing it and maybe go for a straight up one year, by the end of the year there is much possibility that you will be making more profit than those who just invest all at once.

And also this method of using timed investment is a good option when you don’t have enough funds to invest, you can just be investing a little amount weekly or monthly from your income and then keep holding it. That way you’re not going to be affected that much when things goes wrong. And like the op has said , long term is a good way to go, unless you’re a swing trader and the price happens to reach a price you want and you can sell it to collect your profit just like that.

[Gozie51]

(1)  Waiting and trying to pick a point in the dip that you believe is the bottom before investing is very risky as the point you pick might not be the bottom, perhaps just the top of the bottom. Adopting the strategy of investing specific amounts of money into your portfolio over time is advised. This ensures and helps you to avoid the temptation of putting all your money into a portfolio with no certainty.

This is the big challenge that buyers face. Many have caught a falling knife severally and are not able to say a good story about it. The waiting game takes a lot of patience and courage. It is better to have in mind that your are investing for gain or profit so that whatever the outcome later won't be regrettable. In 2018 and currently this year, many hodlers lost heavily while others gained heavily. It is more like being lucky that your time of entry is the right time.

[Cling18]

Bear market is not that bad nor can it be avoided, I see it as a way of cleaning up the space for a healthier market, an opportunity for new investors to buy at a reasonable price, anyone in crypto should always be prepared for this period and also understand it won't last forever, bull and bear both have a time frame.

The bear market shouldn't be feared and we should also keep in mind that its part of the crypto cycle. There's always a season for everything, a time for bull and bear market and as smart investors, taking advantage of every market situation is a smart move. Instead of panicking during the bear market, we should take it as an opportunity to buy and accumulate more crypto.

[AicecreaME]

To identify the bear market is easy, if you a price hike and the suddenly have bearish engulfing candles continuously that is called "bear flag", that is when you go for short trade (if you're in futures) and buy the dip if you're at spot.

The next thing you'll do in the bearish market is to have the greatest perseverance because you need to it to secure the profits you could make in the long run, that's why you don't put all the eggs in one basket for you have something to spend while waiting for the bull market to come again and sell what you bought in the dip.