Here is how to live through the current Crypto Bear Market.

The global market capitalization of crypto is now at roughly $1 trillion today—half what it was in April, according to CoinMarketCap. This is after the Terra meltdown initiated the first mega dive in May, then again in June when Celsius became the first big crypto lender to freeze customer withdrawals to stave off a bank run.

In the recent past, researchers report that Bitcoin mining companies sold more Bitcoin than they mined in May and the months before reducing their overall BTC holdings by 25%.

So whats a bear market & how long will it last?

“A prolonged period of falling prices, usually accompanied by widespread pessimism is what is referred to as a bear market. 

In other words, it’s much like a market correction, but one that lasts for an extended period. For a market to be considered a bear market, prices must fall by 20% or more from recent highs. Just like market corrections, this figure is not set in stone and can vary, depending on market conditions.

As opposed to market corrections that happen during times of economic growth, bear markets usually occur when there is an economic recession or a stock market crash. A bear market in crypto can be caused by any of the same factors that trigger a market correction. However, they can also be caused by other factors, such as political turmoil or a natural disaster.”

How do you survive it?

First, you need to understand bear market happens not only in the crypto space but also in the traditional markets like forex, stocks, real estate, bonds, etc. However, bear markets in crypto are usually more volatile than traditional markets. This could be because the crypto space is still relatively new and not as established as traditional markets.

 Don’t Get Emotional

Try to stay calm and don’t make emotional decisions. you should never forget that bear markets do not last forever. The bull runs that follow usually outdo the bear markets.

Carefully assess the current state of the market

Indicators suggest that a big chunk of new investors who probably bought near the top have already sold most of their crypto amid fear, uncertainty, and doubt (FUD). Their exit from the market at this stage could further stabilize crypto prices. it is important to stay updated and have situational awareness about the current state of the market. This way you stand the best chance to position yourself accordingly, act quickly and minimize losses.

Find the Best Entry Points

You can always find good entry points in a bear market by relying on a combination of tools and indicators. This method is useful to traders who seek to make quick profits.

Indicators like Relative Strength Index (RSI), Average True Range, and Fibonacci Retracement can help you discover important points in the market. With line tools and rectangles, you can also draw out important prices where you can invest some of your money in anticipation of a bull run.

Conclusion

Although we are experiencing high crypto market volatility, cryptocurrencies are advancing toward widespread adoption. and it is expected that the blockchain industry will continue to expand in the years to come. Crypto is here to stay.