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Overview of the 2022 Bear Market - Definition and List of Bearish Patterns

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    Coinhunt CC

  • Reading time

    5 min read

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The Bear Market is one of the issues that all cryptocurrency investors should know about due to its importance. The cryptocurrency market, which continues to be on the agenda by accelerating its pace from day to day, is gaining new investors every day. Although it may seem like a term pool for beginners, in fact, when you get some information, you will realize that it is not that complicated. In this context, basic information that should be known to every cryptocurrency investor is included. The main purpose of our article is to make informative explanations about the “Bear Market”, which is one of the terms of the cryptocurrency world. The Coinhunt team is never intended to give investment advice.

What is a Bear Market?

If the most basic definition of the Bear Market (as it is called in English Bearish Market) is to be made, a definition such as “falling prices” will be the most appropriate one. However, the Bear Market may not be seen in every financial product. In order to see the Bear Market, there are a number of conditions, such as a decrease in the main trends. A Bear Market, which is usually common during periods of economic depression, is a market where the sales force dominates the buying power, resulting in 40-80% declines in prices. This leads to consequences such as panic and instability due to falls. Panic and indecision are replaced by stasis and low demand for products. Decreases in product demands reduce the market value of the financial product (due to its low demand). As it turned out, the impact of the Bear Market on financial products is negative.

How Long Does the Bear Market Last?

It is unpredictable how long the bear market will last. Estimates can be made about when it will start and when it will end, but they cannot be specified as a clear date. It could take days, weeks, or maybe years. The market value of the financial product may decrease gradually if it is not preferred by anyone because it gives the financial product a downward momentum and because of downward action the bear market ends soon, and the prices of the products may increase or remain stable. The product becomes available to continue receiving requests. It is usual for the Bear Market to rise by breaking the negative impact left by the Bear Market due to the increase in demand.

Where Did the Bear Market Get Its Name From?

Some of the most natural questions that can come to mind are “Why Bear?” " Why an animal name?” or “What kind of inspiration was received ?" are questions. The reason why the Bear Market is symbolized by the “Bear” is that bears attack their enemies in case of an attack by lowering their heads from the top down, which inspired the name of this market. This is where the name of the Bear Market comes from, which shows downward action from above, like bears in an attack situation.

History of Bear Markets and Their Effects

Since 1926, there have been a total of 8 Bear Markets that have had a great impact. Some of them lasted a very short time, others left devastating effects. It is also possible to come across a bear market that lasts for 3 months and a bear market that lasts for years. Falling prices confuse investors and cause them to have difficulty making decisions. The common point of all these Bear markets lies here. The pessimistic investor does not want to make the wrong investments and therefore stagnates. The stagnation of the market indicates that purchases have not occurred. As purchases fall, the price of the financial product goes down. The fact that successive events that support each other contribute to the Decimating effect of the Bear Market.

Bearish Formations (Patterns)

Graphs of investment instruments can give an idea about the price. There are some types of candles specific to the bear market. They are examined by dividing them into categories.

Highly Reliable Formations

The Dark Cloud

Abandoned Baby

The Evening Star

Doji Evening Star

Candles That Blow Out

Three black crows

Threesome from the inside down

Threesome from the outside down

Two crows breaking up

Moderately Reliable Formations

Long Doji

Dragonfly Doji

Tombstone Doji

Doji Star

The Rising Block

Three Stars

Two Crows

Low Degree of Reliable Formations

Shooting Star

The Hanging Man

Separated Candles

Formations That Indicate That The Decline Continues

Long Black Candle

Black Marubozu

Black Closing Marubozu

DISCLAIMER: None of the images used in this article contain any investment advice. Used for illustration purposes only.