A downtrend refers to a period when the price of a cryptocurrency is consistently declining over time. This trend is identified by lower highs and lower lows, indicating that sellers are dominating the market.During a downtrend, many investors may become pessimistic, leading to increased selling pressure. Market sentiment can shift due to various factors, including negative news, regulatory changes, or overall market conditions.Traders often look for support levels during a downtrend, which are price points where a currency has previously found buying interest. If the price breaches these levels, it might indicate a stronger downward movement.Some investors use downtrends to their advantage by employing strategies like short selling or waiting to buy at lower prices, hoping to benefit when the market eventually rebounds. Understanding downtrends is crucial for making informed investment decisions and managing risk effectively.