Late-Cycle Bear

Definition ∞ A late-cycle bear refers to a phase within a market downturn where negative sentiment and price depreciation persist, often after an initial significant decline has occurred. This period is characterized by diminishing selling pressure, capitulation from remaining weak holders, and a gradual reduction in overall market activity. It suggests the market is nearing its bottom, preceding a potential stabilization or reversal. Identifying this phase assists in market cycle analysis.
Context ∞ The discussion around a late-cycle bear in cryptocurrency markets often centers on identifying signs of market exhaustion and the potential for a recovery. A key debate involves distinguishing between a true market bottom and temporary relief rallies that can deceive market participants. Monitoring accumulation patterns and sentiment indicators during this phase is crucial for anticipating the transition to a new market cycle.