Four Signals to Determine a Downtrend:

1. Downward Trend Line
Draw a trend line by connecting price highs or lows, and observe whether each rebound can break the previous high. If the price is consistently constrained by the downward trend line, with each rebound unable to break the previous high (such as the resistance level for BTC or the key resistance level for ETH), then a bearish pattern is clear.
Tip ⚠️: In the crypto market, it is recommended to draw trend lines using 4-hour or daily cycles, as the 1-hour line may be influenced by market noise (such as false breakouts or whale manipulation).

2. Moving Average Suppressing Price
When the price consistently operates below key moving averages (such as MA20, MA50, or EMA200), and rebounds to the moving average before falling back, it indicates that the moving average has become a strong resistance, solidifying the bearish trend. For example, BTC breaking below MA200 often triggers panic selling in the market.
Tip ⚠️: The crypto market is highly volatile, and the EMA (Exponential Moving Average) is more sensitive to short-term price changes, making it suitable for capturing fast-paced market movements; long-term moving averages (such as MA200) are used to assess the overall trend.

3. Lower Highs and Lower Lows
The price structure exhibits a pattern of 'lower highs and lower lows,' where the highs of each rebound are lower than the previous high, and the lows continue to set new lows (a typical trend for altcoins in a bear market), indicating that bearish forces are continuously dominant.
Tip ⚠️: Analyze in conjunction with candlestick patterns (such as a descending channel or M pattern) to confirm trend strength. Pay attention to trading volume; if new lows are made with increased volume, the bearish trend is more reliable.

4. Death Cross Confirms Bearish Trend
When the short-term moving average (such as MA5, MA10) crosses below the long-term moving average (such as MA20, MA50), forming a 'death cross,' it is a strong signal that a downtrend is established. For example, the death cross for ETH at the beginning of the bear market in 2022 triggered a significant decline.
Tip ⚠️: The death cross signal should be verified in conjunction with other indicators (such as RSI oversold, MACD green bars expanding) to avoid false signals in a choppy market. The 24-hour trading nature of the crypto market may cause the death cross signal to lag, so multiple time frames should be monitored.