Shorting is a technique traders use to profit from falling crypto prices. The answer to this question could be your key to navigating the bear market unscathed. As the market matures, these structural signals matter more than short-term price moves. “When it becomes harder to move size without affecting the market, it signals that liquidity is pulling back and risk tolerance is tightening.
If you’re just starting your crypto journey, invest small, watch the market, get acquainted with the trading interfaces, and share your experiences. Now, let’s review some constant truths about investing that you should remember, whether during bear or bull cycles. However, setting numerous orders at unexpectedly low prices might help you secure your crypto at a much lower price than expected — virtually no cost. Well, most traders will never catch the exact bottom as sharp downturns happen instantly, and crypto markets trade 24/7.
Is the Crypto Bear Market Over? How to Recognize a Trend Reversal and the End of a Bear Market
If the NUPL continues to decrease and reaches 0.40 or lower, bears could take control. This makes the current reading a critical point for the market. In July, a similar drop in this range led BTC’s price to decline to $55,857.
Bitcoin will still drive the markets, but I’m not convinced that other crypto assets will follow as closely as they did in prior cycles,” he noted. This report delves into the bear markets’ specifics, analysing their characteristics, trends, and opportunities for investors. Stay calm when crypto assets plunge and learn crucial tactics to grow your investments during a bear market. Higher activity among institutional investors and growing investments in crypto assets confirm the end of a bearish phase.
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- It’s challenging to remain calm when crypto-assets are recording double-digit losses.
- Less experienced investors, however, cling to hopes of a rebound and keep making long trades, only deepening their losses.
- Sometimes, sitting on your hands is the smartest play.
- Here are some moves every crypto investor should consider when everything seems in the red.
- Cheds also notes that Bitcoin appears to have broken out of a W double bottom pattern, a bullish reversal structure indicating that a new uptrend is underway.
- Some of those optimistic predictions have faded as ETH continues to underperform, strengthening the belief that a bear market is approaching.
In bear markets, cryptocurrencies, like other traditional risk assets, experience selling pressure, which exacerbates the slump. In contrast, bear markets begin when investors are low on confidence and start believing that prices will continue falling. The cryptocurrency market, much like any other financial market, experiences cycles of expansion and contraction, often referred to as bull and bear markets. A bear market is an opportunity to buy assets at reduced prices, review your strategy, and brace for future growth. A crypto bear market is a phase when crypto prices are steadily decreasing, investor sentiment is negative, and selling pressure is mounting. A bear market often unsettles investors as crypto prices tumble and sentiment turns negative.
Criminal use of crypto spikes after years of steady decline, TRM report says
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The Best Crypto to Buy: Your Guide to Investing in Cryptocurrency in 2026
During this time, FTX, one of the largest crypto exchanges by trading volume, collapsed following a massive bank run. If it fails to recover, it could signal a bear market. Furthermore, the economist pointed to Ethereum’s dip below $4,000, arguing that it now places ETH in an official bear market. Some argue it could mark ifc markets the onset of a bear market, while others see it as a short-lived bear trap that could quickly give way to another rebound. Returns on the buying and selling of digital assets may be subject to tax, including capital gains tax, in your jurisdiction. Nothing contained herein shall constitute a solicitation, recommendation, or offer by Crypto.com to invest, buy, or sell any digital assets.
“Our outlook on crypto markets is constructive to start the new year, even though the clouds from last yearʼs leverage-fueled liquidations have not cleared entirely,” they wrote. After the October 2025 deleveraging event, bear market perceptions rose, but actual investor actions tell a different story. “Basically every on-chain metric or market metric confirms that we are in a bear market in the early stages,” he stated in a BeInCrypto podcast episode. Furthermore, Julio Moreno, Head of Research at CryptoQuant, told BeInCrypto that Bitcoin appears to be experiencing early stages of a bear market, citing weakening demand as the primary factor behind this assessment. It has stayed below zero since October, which also suggests that Bitcoin is currently in a bear market. We cover BTC news related to bitcoin exchanges, bitcoin mining and price forecasts for various cryptocurrencies.
- This confidence is further underscored by valuation views, with 70% of institutions and 60% of non-institutional investors stating that Bitcoin is undervalued.
- Learn to evaluate fundamentals such as team strength, tokenomics, liquidity, use cases, and community support.
- This news article aims to provide accurate, timely information.
- Make a single qualifying crypto buy transaction of at least $10.
- Every major downturn sparks headlines and discussions about the “end of crypto.” Yet historically, after every winter has come a spring.
- Data from Santiment shows that the 30-day Market Value to Realized Value (MVRV) ratios for several large-cap cryptocurrencies are negative.
Whether 2026 becomes a bull market, a bear market, or something in between, it will be important to watch for early signals that could indicate what lies ahead. Elkaleh mentioned that an extreme crypto bear market in 2026 would likely be driven by external shocks rather than inherent weaknesses in the crypto sector. BeInCrypto asked experts to outline which factors could realistically trigger or intensify an extreme crypto bear market in 2026.
The final phase blends improving fundamentals with renewed optimism. Prices move sideways within a tight range as “weak hands” exit and long-term holders accumulate. They unfold in stages that investors can recognize and use to their advantage. Technical indicators confirmed the trend, with Bitcoin trading below its 200-day moving average and showing RSI divergence on daily and weekly charts. After hitting its all-time high of $109,350 in January 2025, Bitcoin started a steady decline.
Fidelity Investments starts its own stablecoin in a massive bet that future of banking is on blockchain
However, if the price of the crypto starts increasing and the uptrend continues, your losses could pile up indefinitely. If an asset’s price dives significantly, you can still lose money. Staking is the practice of locking away your coins on a proof-of-stake (PoS) blockchain for a period of time and earning rewards for doing so. If you are wrong, the prices will decrease instead and could put you in a dire situation. Or are you just here to earn some quick bucks doing short-term trading? Do you believe in crypto’s long-term success and want to tap into the many opportunities that it could bring along?
In bull markets, Bitcoin usually leads the way, followed by Ethereum (though not since recently) and altcoins. Most coins have lower trading volumes, so big buys or sells (or speculations of the two) can swing prices quickly. Unlike traditional markets with decades of stability and regulation, crypto runs 24/7 with fewer guardrails. So knowing when bullish and bearish sentiment is peaking or fading can prevent costly mistakes. These shifts impact asset prices across the board, from Bitcoin to small altcoins. Crypto prices don’t rise or fall forever—they move in cycles.
The most recent cycle ran exactly 354 quebex days. You’ll notice lower trading volume across exchanges. The mood shifts fast—from hype to hesitation—and investor sentiment turns fearful.
Crypto bear markets are painful, but they are also temporary. Since cryptocurrencies are high-risk assets, they are usually the first to be sold off when investors de-risk. Around 26% of institutional respondents and 21% of non-institutional respondents reported that they believe the crypto market is currently in a bear market (markdown) phase. A recent survey by Coinbase Institutional and Glassnode reveals that around one-quarter of both institutional and non-institutional investors view the crypto market as being in a bear phase. Negative news, fear, and uncertainty often drive prices lower, making sentiment a key factor in market cycles. A crypto winter is an extended bear market with prolonged low activity and sentiment, often lasting over a year.
Bull markets start when investors feel confident that prices will increase and the uptrend will continue over a prolonged period. For those out of the loop, a bear market can be best defined as a prolonged drop in asset prices, which then causes your portfolio to shed value. Following these tips will teach you how to survive crypto bear markets. Despite this fact, major altcoins have yet to reach all-time highs, which typically happens in crypto bull markets but has not happened in the 2024 bull cycle. And in a bear market, you will likely have the opportunity to buy assets at a lower price. Dollar-cost averaging, or DCA, is a simple but long-term strategy in which you continuously buy small amounts of an asset over a period of time, regardless of the price.