The 4 Stages of A Bear Market

On November 9, 2021 Bitcoin reached $68.3k - yet a new All Time High — as the Fear and Greed Index reached Extreme Greed.

This also marked the beginning of the Bear Market. In this article we will be looking at the different stages of a bear market.

What makes a Bear Market difficult to spot, as the trend begins to shift, is that there is no indication that it’s at this stage when the wave finally breaks. Maybe it’s just another dip. Bitcoin had rallied earlier during the 2021 summer, corrected and then rallied again.

Denial

(November 2021 — March 2022)

It wasn’t until around February 2022 that people started calling a Bear market in, but even then many were still hopeful that this wasn’t the case. In fact, the Fear and Greed index has bounced back to 60 as late as March 2022.

The Denial stage is characterised by somewhat erratic movements of Fear and Greed index, which seem to also influence the general market to exhibit significant, yet short-lived spikes. Much like human denial, market denial chaotic, but predictable.