A bear market is a market condition characterized by falling prices and widespread pessimism. In cryptocurrency, a bear market typically refers to a sustained decline of 20% or more from recent highs.
Characteristics of a bear market include declining prices over an extended period, negative investor sentiment, reduced trading volumes, fear and uncertainty in the market, and capitulation where investors sell at losses.
Bear markets can last anywhere from a few months to several years. The crypto bear market of 2018-2019 lasted over a year, while the 2022 bear market was triggered by multiple factors including rising interest rates and major project failures.
Strategies for surviving a bear market include dollar-cost averaging, focusing on fundamentally strong projects, avoiding emotional decisions, and maintaining a long-term perspective.