Crypto Bear Market financial terms you should know

by Arthur · July 19, 2022

Accumulation phase: This is a consolidation period where prices are traded within a narrow range, usually following a bear market or a downward trend in prices and investors see an opportunity to buy or accumulate assets at a low price. The significance of an accumulation is that it usually precedes the start of a rise in prices or a beef market.

Altcoin: An altcoin is any 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.

Bagholder: An evildoer is someone who has a coin that has lost value and is now worth less than what he paid for it, or nothing at all. Bagholders usually buy towards the top of a crypto value and end up holding nothing but an empty bag.

Bearish: A bearish market is a market where prices fall.

Bullish: A bullish market is a market where prices are rising.

Bear market: A bear market is a long period of decline in asset prices. Bear markets are usually associated with a high degree of market uncertainty and pessimism.

Bearish flag: This is a technical pattern found on a chart that looks like an upside-down flag with a pole. After a period of bearish price action, this pattern means a potentially further bearish price drop.

Bubble: A hyper increase in price driven by speculation and hype for a particular market or asset. It is often associated with all the assets in the market being overvalued and the expectation that the price may crash or that the bubble will burst.

Beef market: A beef market is a long period of growth in asset prices. Beef markets are usually associated with high market optimism and self-confidence.

Bullish reversal: After a period of price decline 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 bullish trend.

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

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

Cryptocracy: A crash is a sudden and sharp drop in asset prices, usually 10% or more in a day. Cryptocracy is usually associated with high market uncertainty and fear.

Dead cat bounce: A dead cat bounce is a small and temporary price increase after a significant decline.

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

Diamond hands: A slang term that is popular on Reddit and Twitter for those who hold volatile stocks or crypto despite high volatility or falling prices, because they believe in the long-term value of the asset.

FOMO: FOMO is an acronym for “fear of being missed”. FOMO is the feeling of anxiety or excitement that comes from thinking that you can miss a good opportunity and feel pressure to go into it. This can lead to buying a digital asset at the peak price before a massive fall.

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

Golden cross: A technical pattern found on charts where the 50-day moving average crosses over the 200-day moving average, indicating a potential continuation of a bullish trend.

Liquidation: When a business decides to close down, it sells its assets to pay off lenders and creditors. Investors can also liquidate their holdings to raise money, exit a weak position or for other reasons.

Liquidity: The simplicity of a cryptocurrency can be exchanged for another digital asset or fiat currency. Assets with good liquidity have a good volume of buyers and sellers.

Close call: This happens when the portfolio value of the owner’s account falls below the required threshold for the broker’s required limit. This will force you to add more money to your account by either depositing more or selling current assets.

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

Moving average: One of the most common technical indicators found on a chart is a line that indicates the average price change over a specific time frame such as daily, four hours, weekly, etc. It allows investors to see the general trend by smoothing out the peaks and falls in prices. Common moving averages are the 50-day moving average and the 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, which indicates a potential bullish reversal in the price.

Pump and dump: This is a type of market manipulation where a group of investors artificially inflates the price of an asset by buying it in large quantities or hyping it through social media, or both, and then “dumping” it on the market for a profit.

Rising wedge: This is a technical pattern found on a chart indicating a potential bearish collapse in price action. This is usually used in combination with technical indicators such as RSI or cash flow indicator (MFI) to measure the probability of rapid price decline in the form of overbought state or bearish divergence.

Risk of / risk of: The risk-at-risk-of-theory states 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 staying on the sidelines with cash.

Sell out: Just as it sounds, this happens when people quickly sell a particular asset, which causes the price to fall rapidly with high volume. It can happen during a crash or due to bad financial news.

Short sale: Short selling is a type 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 profit from the price difference.

Trade: A trade is a transaction in which you exchange an asset for another. The purpose of a trade is to profit from the price difference between the two assets.

V-shape recovery: This is a technical chart pattern where the prices of an asset or a market fall dramatically, only to rebound very quickly, creating a V pattern on a chart.

Volatility: Volatility is a measure of how much the price of an asset fluctuates. A volatile asset is one that has significant and sudden price fluctuations.

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

Whipsaw: When the market is neither bullish nor bearish, there are periods when the price of the market or asset is trapped in an area where the price goes up and down rapidly over a long period of time.

Dividend or percentage return is how much income is generated from the principal of your investment. Let’s say you bought a bitcoin for $ 10,000, and the current price is $ 19,000. The dividend is 90%.