A bear market in cryptocurrency refers to a period of consistent price declines and negative sentiment. While the term is also used in stocks, real estate, and commodities, crypto bear markets are usually more volatile, with drops of up to 70–85%.

Traditionally, a bear market is defined as a 20% fall in prices within about two months, often caused by investor pessimism and panic selling. In crypto, this downturn is amplified by smaller market size and rapid trading activity.

The opposite of a bear market is a bull market, where optimism drives prices higher. Analysts use tools like RSI, MACD, and moving averages to detect bearish signals and market momentum shifts.

Understanding bear vs. bull markets is crucial for investors looking to manage risks and navigate crypto’s frequent cycles.