Bear market

A bear market describes a broad, lasting decline rather than a single bad week. For stock indices, a fall of at least 20% from a recent high is a widely used rule of thumb. A smaller drop of 10% to 20% is usually called a correction.

The 20% line is a convention, not an official rule, and crypto assets often move far more than 20% without anyone changing the label. On a chart, bear phases usually show a series of lower highs and lower lows.

A bear market is only obvious in hindsight. Sharp rallies inside a longer decline are common, which is why traders tend to watch trend structure rather than a single bounce.