Bearish Crypto Markets Financial Conditions You Need To Know About

  • Accumulation phase: This is a consolidation period where prices are trading within a tight range, usually following a bear market or a downward price trend, and investors see an opportunity to buy or low price asset accumulator. The significance of an accumulation is that it usually precedes the start of a trend in price or a bull market.

  • All coins: An altcoin is a cryptocurrency created as an alternative to bitcoin. Altcoins can be created to enhance the original design of the Bitcoin network or to pursue a completely different model.

  • Bag holder: A bag holder is a person who has a coin that has lost value and is now worth less than what they paid for, or nothing at all. Bag holders usually buy to the top of a crypto value and end up having only one empty bag.

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  • Kiss: A bear market is a market where prices fall.

  • Bullish: A bull market is a market where prices rise.

  • Bear market: A bear market is a long period of falling asset prices. Bear markets are generally associated with a high degree of uncertainty and pessimism in the markets.

  • Bear flag: This is a technical pattern found on a chart that looks like a flag on its head with a pole. After a period of bearish price movements, this pattern means a potential further decline in bearish prices.

  • Bubble: A hyper-price increase driven by speculation and hype for a particular market or asset. It is often associated with the overestimation of all market assets and the expectation that the price may go down or the eruption will bubble.

  • Bull market: A bull market is a longer period of growth in asset prices. Bull markets are usually associated with optimism and high market confidence.

  • Bullish vending: After a period of falling prices or a period of consolidation either below the 50-day moving average or the 200-day moving average, this will be the start of a new uptrend.

  • Surrender: This is happening during a downward trend or a bear market, where the price of an asset falls and the asset encounters a massive increase in sales pressure.

  • Correction: A correction occurs when the market price of a crypto or digital asset falls 10% or more from its peak over a period of days, weeks or months.

  • Encryption breakdown: A crash is a sudden and sharp drop in asset prices, usually by 10% or more in one day. Crypto-crashes are usually associated with high market uncertainty and fear.

  • Dead cat jumps: A dead cat jump is a small, temporary recovery in price after a major drop.

  • The cross of death: A technical pattern found on the charts where the 50-day moving average crosses below the 200-day moving average, indicating a potential continuation of a downward trend.

  • Diamond needles: A popular slang term on Reddit and Twitter for those who have volatile stocks or cryptocurrencies despite a high rise or fall in price as they believe in the long-term value of the asset.

  • FOMO: FOMO is the abbreviation for “fear of missing out”. FOMO is the feeling of anxiety or excitement that comes from the thought that you might be missing out on a good opportunity and the pressure to get into it. This can lead to buying a digital asset at its maximum price before a massive drop.

  • FUD: Fear, insecurity and doubt. RD&D is often used to describe negative sentiment in the market.

  • Gold cross: A technical pattern found on the charts where the 50-day moving average crosses above the 200-day moving average, indicating a potential continuation of an uptrend.

  • Liquidation: When a company decides to cease operations, it sells its assets to pay off lenders and creditors. Investors may also liquidate their holdings to raise funds, leave a weak position or for other reasons.

  • Liquidity: The ease with which a cryptocurrency can be exchanged for another digital asset or fiat currency. Assets with good liquidity have a good amount of buyers and buyers.

  • Margin calls: This happens when the portfolio value of the owner’s account falls below the required threshold for the required limit for the courtier. This would require you to add more money to your account by depositing more or selling short-term assets.

  • Market value: In crypto, market value is the total value of all coins or tokens circulating in the market.

  • Moving average: One of the most common technical indicators found on a chart is a line indicating the average price change over a given period of time, such as daily, four-hour, weekly, etc. It allows investors to see the general trend by smoothing price peaks. and -fall. Common moving average is 50-day moving average and 200-day moving average.

  • Sold out: This term is used to indicate that the price of an asset is too low or undervalued, as shown by a technical indicator such as Relative Strength Index (RSI) or Stochastics, indicating a potential bullish reversal in the price.

  • Pump and dump: It is a form of market manipulation in which a group of investors artificially inflates the price of an asset by buying it in large quantities or publishing it via social media or both, and then the “reverse” in the market for a profit.

  • Upright wedge: This is a technical pattern found on a chart indicating a potentially low breakdown in price action. This is typically used in combination with technical indicators such as the RSI or Money Flow Indicator (MFI) to measure the likelihood of a rapid price decline in the form of an overbought state or bearish divergence.

  • Risk to / from: Risk-at-risk theory says that when the market or economy is in good shape, investors are more likely to buy more risky investments such as crypto or stocks. When the market or economy is bad, investors prefer safe assets such as bonds or sitting with cash on the sidelines.

  • Trust: Just as it sounds, it happens when people quickly sell a particular asset, causing the price to fall rapidly with high volume. This can happen during a crash or due to bad financial news.

  • Short sale: Short selling is a form of trading where you sell an asset you do not own and hope to buy it back later at a lower price so you can take advantage of the price difference.

  • Exchanges: A trade is a transaction where you exchange an asset for another. The purpose of a trade is to take advantage of the price difference between the two assets.

  • V-shaped recovery: This is a technical chart pattern where the prices of an asset or a market fall dramatically only to rise very quickly, allowing a V pattern on a chart.

  • Volatility: Will is a measure of the fluctuation in the price of an asset. A volatile asset is an asset that has large and sudden price fluctuations.

  • Whale: A whale is an investor with a large capital. Whales can have a significant impact on the market price of an asset by buying or selling large quantities.

  • Whisk: When the market is neither bullish nor bearish, there are periods when the market or asset price is caught in an interval where the price rises and falls rapidly for an extended period of time.

  • Render or the percentage return is the income generated from the principal of your investment. Let’s say you bought bitcoin for $ 10,000 and its current price is $ 19,000. The yield is 90%.

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