Definition ∞ A bear market indicator is a metric or signal suggesting an extended period of declining asset prices. These data points help analysts identify conditions conducive to a sustained downward trend in cryptocurrency valuations. Such indicators often include sustained trading volume reductions, decreasing network activity, or significant drops in overall market capitalization. Their observation assists market participants in assessing the likelihood of a prolonged price contraction.
Context ∞ In cryptocurrency news, discussions around bear market indicators often highlight on-chain data and macroeconomic factors influencing investor behavior. Current market analysis frequently examines metrics like the MVRV ratio or persistent negative funding rates in derivatives markets for signs of weakening price support. Recognizing these signals aids in understanding reports on market downturns and potential recovery timelines.
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