What Does “Bear Market” Mean in the Crypto Circle? (How to Calculate Profits in the Crypto Circle)

08/16/2023 04:46 • Blockchain Briefs • 55 views

What does “bear market” mean in the crypto circle? What does it mean?

In the field of cryptocurrency, many people are familiar with two common forms in the crypto circle: one is manipulation of prices by market makers, and the other is the selling off of holdings by retail investors. If someone wants to create panic selling through various forms of bait, they will sell off all these chips or exchange them for other currencies, thereby causing a market downturn. This practice is also referred to as “cutting leeks.”

Therefore, “bear market” refers to unfavorable news or warnings from news publishers. It refers to a short-term rebound and pullback that may occur after a significant price fluctuation during a specific period of time, but it does not necessarily mean that the trend has ended. Because when Bitcoin falls to $8,000, it usually generates significant downward pressure and then rapidly reverses, so investors should pay attention to the risks involved.

How to Calculate Profits in the Crypto Circle

There is a saying in the crypto circle: “How do you calculate profits? What did you lose?”

The principle is simple! If losing money in investment means making money, does making a profit serve as a risk control method? Yes, as long as you have not lost money, you can invest your funds because this part of the principal cannot be fully lost. If there are many people who think they have lost money, they can buy some other currencies in the short term, such as Bitcoin, etc., as these are controllable.

But if you really want to know how to calculate and assess your own coin price, you need to first see if your account has achieved a certain level of user growth rate (i.e., when you trade and earn certain profits) and the profits obtained from extracting cash from exchanges. Below, we will analyze the changes in coin value through a simple formula:

1. The ratio of daily gains and losses is 0, meaning that the increase in value is greater than the decrease. The average rate of increase will be higher when the 4-year moving average crosses above the 60-day moving average. Therefore, from the chart, we can see that the current coin market is at a critical period of Bull-Bear transition.

2. In terms of daily candlestick patterns, the price trend follows the direction of the trend. Therefore, everyone should pay attention to the extent of the pullback in this position to prevent major fluctuations. However, judgment should be made on future price expectations, and entering the market operation should only be done after the trend is confirmed (see chart).

3. Profitability after adjusting positions. In this case, investors should pay attention to the ratio between profits and losses. This is why many users see this result both before and after the halving. Only after obtaining the corresponding figures based on historical data can decisions be made. In fact, we can judge through two indicators: first, a significant event may occur before the end of the market cycle, or before a certain point in time, or after the end of a certain moment of the market cycle. The second indicator is the performance of coin prices at each market climax.

First, we need to pay attention to the dynamics of the market. For each stage of the market condition, it always presents an upward or downward movement. In the entire cycle, there is usually a specific period of time, which includes the rebound of the market in certain months, and then a sustained upward breakthrough. For example, the current Bitcoin has been hovering around $10,000 for a while. If Bitcoin returns to the range of $9,300 to $9,500, there may be a significant rebound, and there will be obvious volume in the range of $9,000 to $10,500. Meanwhile, as each major increase in Bitcoin drives an increase in trading volume, the possibility of Bitcoin’s price increase will also increase. Therefore, there are also factors that cause varying degrees of upward movement in the price.

This article and pictures are from the Internet and do not represent aiwaka's position. If you infringe, please contact us to delete:https://www.aiwaka.com/2023/08/16/what-does-bear-market-mean-in-the-crypto-circle-how-to-calculate-profits-in-the-crypto-circle/

It is strongly recommended that you study, review, analyze and verify the content independently, use the relevant data and content carefully, and bear all risks arising therefrom.

What Does “Bear Market” Mean in the Crypto Circle? (How to Calculate Profits in the Crypto Circle)

How to Calculate Profits in the Crypto Circle

Recommended articles