“Bearish” describes a market sentiment where investors expect prices to decline. When someone is bearish, they believe that the value of a cryptocurrency will drop, leading to a general pessimism about its future performance.

In practice, a bearish trend can manifest in various ways, such as increased selling activity or negative news surrounding a specific cryptocurrency. This sentiment often leads to lower trading volumes and heightened volatility. Traders who are bearish might adopt strategies like short selling, hoping to profit from falling prices.

They may also choose to delay buying until they believe prices have hit a bottom. Market indicators, like a prolonged decrease in price or a breach of key support levels, can reinforce bearish sentiments. This atmosphere can be amplified by broader economic factors or regulatory developments.

Understanding bearish conditions is crucial for investors, helping them make informed decisions and potentially minimize losses during downturns. Recognizing these signs can guide trading choices and overall investment strategy.