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Crypto glossary

What Is a Bear Market?

A bear market is an extended price decline, conventionally dated from a peak once an asset or index has fallen about 20% and stayed down. The threshold is a convention borrowed from equities and applied loosely in crypto, so the label depends as much on duration and character as on depth.

A bear market is an extended decline in prices, conventionally dated from a peak once a broad index or asset has fallen roughly 20% and stayed down. Its mirror is a bull market. The threshold is a convention rather than a definition — it comes from equity-market usage and is carried over to crypto loosely, which is why two commentators can disagree about whether one is underway at all.

The 20% convention and its limits

Bitcoin has repeatedly fallen more than 20% inside stretches that were later described as bull markets. A drawdown that would mark a bear market in a large equity index is an unremarkable week in crypto, so in practice the label leans on duration and character as much as depth: months rather than days, lower highs as well as lower lows, and a change in what the market rewards.

Because of that ambiguity, the useful question is usually whose bear market. Someone reading a weekly chart and someone describing a multi-year cycle can both use the phrase correctly and mean entirely different things — a distinction worth holding on to whenever the term appears in a headline.

How MoonWire uses it

We do not declare bear markets. Our reads classify conditions mechanically as a market regime, and we report the phrase when a source uses it, attributed to that source. In our 11 August market pulse the same 20% lag in Bitcoin was read by two analysts as opposite things: a verdict on the cycle, or the precondition for the next leg up. Our 13 August pulse covered a comparable split over where the market's liquidity had gone.

What it is not

A bear market is not a forecast, a fixed duration or a floor. It is a backward-looking description of a price path, and it carries no information about when that path ends — the 20% figure marks the entry, never the exit. It also says nothing about individual assets, since sectors and single coins routinely move against the aggregate.

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