Long-term investors, who prefer to keep the crypto coins in their hands, are experiencing a bear-bear market since the beginning of the year. The fact that most of the altcoin’s value is close to 90 percent when looking at the highest value of all time, a bull rally hopes to decrease gradually. Inspired by a post in CryptoCurrency subreddit, we will share about the 5 stages of the bear market in this content.
5 stages of bear market in Bitcoin
The 5 stages of the bear market seen in the crypto money markets are depicted with the Bitcoin daily chart as follows.
Stage 1: Rejection
The first stage of a bear market is the rejection of the end of the bulls. Although technical indicators show that a bull market has come to an end, traders often wait for action at this stage. When you start to doubt your decision to keep the crypto presence in your hands, you are starting to take a long journey through the subconscious.
According to the current bearish market, in the case of Bitcoin, the rejection part of the cryptocurrency, which is in the first phase, took place in January 2018. The rise of the highest bitcoin price of all time to $ 19,000 and then quickly to below $ 12,000 led to a decline in traders’ $ 18,000 expectations.
Stage 2: Anger
After the sellers have fooled the market to protect their portfolios, the market starts to fall significantly and rapidly. When you see that your investment is losing its value every day, there is nothing you can do and this creates anger in the investor. And most of the time the following question is asked: ”Why are crypto coins going down?”? Why didn’t I sell it before? Ip “Why does everyone sell? Ve
This is a stage where you can get angry by dropping crypto coins by emptying your entire portfolio and reducing your losses.
In Bitcoin’s case, the anger scene appears in February 2018, when the crypto money fell below $ 6,800. This situation was a 65 percent decline in the 2-month period.
Stage 3: Bargaining
As the market improves, the FOMO undertakes any rational thought and the third phase of a bear market begins; Bargain. In order to ensure that you do not miss the inevitable bull run, more assets are purchased. After all, you’ll be able to sell most of your crypto money during the Anger period and think you’re psychologically ready for it.
In the case of Bitcoin, the bargaining phase was around March 2018, when prices rose to $ 11,000 after the $ 9500 breakdown.
Step 4: Depression
When some rising prices in the bargaining stage persuade the investor and cause the rally to start again, people cause the depression phase to be taken from the top.
When this situation hits the investor as a slap, it is realized that the good old days are finished for the investment of crypto. In this period, portfolios are no longer checked as before. And the interest in the market is reduced.
Bitcoin’s depression phase was revealed in July 2018. The prices fell by 7 months and the chances of recovery decreased.
Stage 5: Acceptance
The last and most painful phase of the bear market is known as the stage of acceptance. This is where you realize that crypto coins are not just about speculating on price. You really have some crypto projects with revolutionary and destructive technologies, and you begin to see the potential of crypto coins.
In the case of Bitcoin, we are now experiencing the acceptance stage of the bear market. Horizontal markets and the support of $ 6,000 for the last 4 months show that investors are not expecting a rally recently. It is now a well-known fact that crypto-money and crypto projects have to overcome some of the challenges that crypto markets have to deal with to be accepted by the mainstream.
The information in the content of the text is for informational purposes only. It does not constitute any investment advice. The author is not liable for your profit or loss arising from the investments you are making. Investment is ultimately based on many foundations such as knowledge, knowledge, experience, research and personal decisions.