Bearish Signal

Definition ∞ A Bearish Signal is an indicator or pattern in financial markets that suggests a potential decline in asset prices. These signals are derived from technical analysis, fundamental analysis, or market sentiment, and they collectively suggest a pessimistic outlook for an asset’s future valuation. Traders and analysts utilize these signals to anticipate downward price movements and adjust their investment strategies accordingly.
Context ∞ In the context of cryptocurrency news, bearish signals often precede or accompany significant price corrections. Discussions frequently revolve around specific technical indicators like moving average crossovers, chart patterns such as head and shoulders formations, or macroeconomic factors that negatively influence investor confidence. Monitoring these signals is critical for understanding market sentiment and potential shifts in asset valuation.