Bear Market Indicators

Definition ∞ Bear Market Indicators are specific metrics or patterns that suggest a prolonged decline in asset prices. These signals help market participants anticipate or confirm a bearish trend. They typically reflect decreasing investor confidence, reduced trading activity, and unfavorable macroeconomic conditions.
Context ∞ Discussions around bear market indicators are prominent in cryptocurrency news during periods of market downturns or uncertainty. Analysts closely monitor these indicators, such as declining trading volumes, sustained price drops, and negative sentiment, to forecast market movements. Understanding these signals assists in assessing the stability and future direction of digital asset markets.