BEAR MARKET STAGES
Bear markets generally have four distinct phases.
First Phase of a Bear Market
The first phase is characterized by high prices and high investor sentiment. Towards the end of this phase, investors begin to withdraw from the markets and make profits.
Second Phase of the Bear Market
In the second stage, stock prices begin to fall sharply, trading activity and company profits begin to decline, and economic indicators that may have once been positive begin to fall below average. As sentiment begins to decline, some investors begin to panic. This is called capitulation.
Third Phase of the Bear Market
The third phase indicates that speculators begin to enter the market and, as a result, increase prices and some of the trading volume.
Fourth Phase of the Bear Market
In the fourth and final stage, stock prices continue to slowly decline. Bear markets begin to give way to bull markets as low prices and good news begin to attract investors again.#Binance #btc #Bitcoin