The Crypto Market and it phases.

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Hello friends, welcome back to this space. Trust y'all are doing great. I hope you've been getting value here as well...we have been discussing about the current market condition which seems to have some bullish characteristics.

We have talked about it extensively. I deemed in fit to balance this topic by discussing the Bear market. Lets get to know the bear market as well coupled with it features and then finally we can do a comparison between both phases in the market. Let get to discus the bear market...I trust you're ready...leggo smiles!

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Introduction

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Do we really have people in their numbers who love the crypto winter? I doubt if we do. I understand that we have two major players in the market, the bull and the bears but from observation, I've discovered that most of the players are bulls because they love it when the market goes bullish.

Personally, I love the bull market but on a more deeper look, you would discover that both phases in the market are important and they play a major role as both bring balance to the market and make it healthy. So the bulls and the bears are key contributors to the market.
Now the question is what is a bear market?

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What is a bear Market

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This is a period where the price of assets in the market fall downward on a steady mode and it tend to last for a period of time. It not a one off thing like a day or two. That would mean market correction or retracement, but when it continually drops up to 20% from it former height over a period then we can say the market is going bearish.

^freepik

Usually, this period comes with pessimism, as investors seems to lose hope in their holding. Some are even caught up in market emotion which result into selling some of their holding at a very discounted and unfavorable price. It not a period investors look up to, hence the reason it's called "Winter"

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Where Did the Term "Bear Market" Come From?

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The bears are set of investors who are pessimist, they do not have a positive (bullish) view as touching the market. They have the belief that price of asset will fall and they always stick to this notion.
They also have some special attribute of the animal called bear which they exhibit in the market.

^freepik

A bear has a particular type of movement when it aims for it prey. It attacks meticulously and in a very fierce manner doing all in it power to bring down it prey in a downward manner and that is synonimous to what we see in the market, a steady movement of price downward which stays for an elongated period.

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Phases of a Bear Markets

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Research has shown that the best market comes in phases. The fact is, it's not very easy to spot a bearish market immediately hence the phases which I would be discussing shortly.

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• Phase 1

This phase is characterized by massive drop out of investors who seem to think price have gotten to some peak and they don't want to be caught up in the market by staying longer than expected without selling off their holdings at a profit.

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• Phase 2

This phase is characterized with sharp decline in price of assets due to panic. The reason is not far fetched, the impact of the drop out of many investors is now telling on the market, people begin to panic as they ain't sure where the market is headed. Different sentiments sets in and then more falls are experienced.

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• Phase 3

At this point, optimists and speculators gradually begins to gain entry into the market with the hope that the market can take a U-turn upward after it must have traveled downward. After all the market operate in cycle. The activities of these optimistic speculators begins to give life to the market gradually by raising the prices and trading volumes of these asset.

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• Phase 4

This is the final phase which brings and end to the bearish market, this is where the market take a u-turn and gradually begin to move in an upward direction. The entry of the pessimist and speculators begins to lure investors since they have been able to affect the price and trading volumes of these asset in their little way.

Investors then begins to come back to the market based on the glimmer of light they have seen and then in no time the market bounces back in full force which then makes the market bullish again. I believe it's what we are experiencing as we speak, the sudden bouncing back is imminent.

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Conclusion

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Better days are indeed ahead. We are just some step away into the massive greens and am optimistic about it...I hope you're too. Let also do well to position ourselves to get the best out of this season we are steadily approaching.

There you go friends.I would love to wrap it up at this point. I want to believe you've gotten so much from this piece. As my usual custom is, I would always encourage that you DYOR to be sure of every financial step you would want to take as I won't be liable for any form of loss encountered by you.

Feel free to share with me your thoughts in the comment section. Thanks for your time once again. Gracias!

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^{Disclaimer: This post is made as an education and not investment advice. Digital asset prices are subject to change. All forms of crypto investment have a high risk. I am not a financial advisor, before jumping to any conclusions in this matter please do your own research and consult a financial advisor.}

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Regards
@lhorgic♥️

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