In casual conversation, we refer to any downward trend in prices as signs of a bear market. Upward trends are signs of a bull market.
Professional investors reserve the term “bear market” for widespread declines of 20% or more over a period of at least two months. If the price drops less than 20%, investors refer to the decline as a correction.
Bear markets last until the stock or cryptocurrency reaches a new high value. Technically, a crypto that regains 99% of its value is still in a bear market until a new high price is established.
Here’s a handy way to remember the difference between bull markets, in which prices rise, and bear markets, in which they fall: Consider the way the animals attack. A bull catches you in its horns and throws you upward. A bear swipes down with its paw to push you to the ground.
NOTE
This text is informative in nature and should not be considered an investment recommendation. It does not express the personal opinion of the author or service. Any investment or trading is risky, and past returns are not a guarantee of future returns. Risk only assets that you are willing to lose.
