How to Invest in a Bear Market?

In a bear market, it is the market where sellers dominate and cause downward prices in the market they are in. Separate market in english It is known as the Bearish Market.  Prices move along the downtrend, and with momentary rises, bulls (buyers) cannot create continuity by establishing dominance. In other words, upward mobility cannot provide permanence and the asset continues its pricing during the downtrend without distorting the image. So how should the investor who wants to protect his crypto money in the bear market follow?

Trading in a bear market is twice as difficult as in a bull market. By considering past references, the investor can more easily think that the trend is reversing in instant rises. However, on the contrary, it is more difficult for the investor to accept that the direction of the market has turned upwards. For this reason, sellers establish stronger dominance in the market. The investor who is convinced early will have carried out his transactions in the market with sales dominance and perhaps signed a long wait. 

It is useful to proceed with technical analysis in the bear market, you should use the right points to determine your trend line or channel, and you should determine your area well by identifying the region where it starts to fall. If prices are hovering within a channel, you can create your trade area by taking strength from channel support and resistance. In such cases, prices move within a certain band range. We can call this section the stubbornness of bulls and bears. Bear dominance is clearly felt at resistances and bull dominance at supports. The trader also tries to get the maximum benefit from this area.

The investor can evaluate the bear market in two ways other than taking advantage of the trading areas. The first is a method of reducing cost by buying at a lower level as the market retreats. In particular, it is the path followed by the investor who buys with the idea that prices will rise or the investor who makes “hodl”. Another method is the path followed by the investor who has an asset in his hand and whose position is profitable. In this case, the investor is willing to close the position he has made a profit and buy from below. Thus, it buys again in the withdrawal and can easily benefit from the trading area formed in between. The investor can protect himself in both situations.

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