After another glorious bull run of all- time highs ended in November 2021, Bitcoin’s value was hammered, with its price plummeting to a low of $35,071.80 on January 23, 2022. Although the price of bitcoin has recovered and stabilized since then, this drop in value has many bitcoin holders worried.

What most people don’t understand is that not only can we survive a bear market (which we are in right now), we can also make a profit in a bear market. Let’s take a look at what you can do when Bitcoin is in a bear market.

Why is Bitcoin’s value falling?

Before we get into how to profit in a bear market, let’s talk about why Bitcoin’s price is falling. The fundamental reason is that Bitcoin, similar to traditional fiat currencies, is still subject to current events and new regulations.

For example, in 2021, the Chinese government announced a total ban on Bitcoin, including trading, holding, and even mining BTC. The move had an immediate impact on the value of BTC: the price fell from $63,569.81 on April 14 to $29,789.94 on July 21.

Another example is the fear of a “crypto winter” sweeping the cryptocurrency community. This panic drove the value of BTC from $ 50,792.04 to a low of $ 35,071.80.

In either case, BTC will eventually find a way to bounce back, but that doesn’t make it easy for those of us who invest in Bitcoin. Thankfully, there are strategies that not only help us survive a bear market, but help us thrive.

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The Do’s and Don’ts of Bitcoin’s Bear Market

For your understanding, we have put together a list of what you should and should not do during a Bitcoin bear market. Please refer to see which ones meet your needs.

Don’t panic sell
The first thought on our minds might be a sell-off. If you panic and think about selling, take a step back and reconsider. The problem with selling right after the price drops is that you only see losses when the value of bitcoin drops. “Should I sell my bitcoins?” The answer to this question is no.
Hold for a long time (HODL)
This slang term is what Bitcoin enthusiasts communicate with each other during bear markets, and the logic behind it actually makes sense. HODL, Hold For The Good Life, is a rallying cry that encourages Bitcoin holders to stay put and survive the market-shattering panic. In simple terms, it follows the logic that if the price of Bitcoin has been at a high, it can rebound again after a period of low. We can see that the value of Bitcoin, after going through extremely low periods time and time again, continues to find ways to break the previous all-time highs, so it seems that this idea is very reasonable. However, HODLing is easier said than done, and some long-term holders face enormous pressure when they see the price drop.
Don’t trade now
Bear markets are known to cause extreme emotional distress to people. This may lead many traders and investors to start thinking about trading their few remaining currencies to minimize losses. The problem with this operation is similar to selling immediately after a price drop. Avoid fear, uncertainty and doubt (also known as FUD) when trading Bitcoin. The decision to trade or sell should be made with confidence, which often requires clear information. Please don’t let the panic of the community affect your trading!
Don’t just focus on all-time highs
Bitcoin’s all-time highs show us that BTC’s value has continued to increase over the past decade, but in reality, all-time highs are not the most stable points. It’s easy to be fooled by the sheer number of all-time highs. The truth is, all-time highs don’t last forever. Just like a bear market, extreme highs and lows in Bitcoin’s value are temporary points in its price history.
Look at the yearly lows
Instead of focusing on all-time highs, do the opposite and look at yearly lows. Step back and focus on Bitcoin’s overall price history, looking at the yearly lows and comparing them year-over-year. You may find yourself in a better position than you initially thought, which may make HODLing easier.

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Bitcoin Bear Market Strategies You Should Try

Like we said before, sometimes, you just need to change your perspective. It is important to remember that your Bitcoin trading and investing should be done with confidence. These strategies may be helpful for your reference:

Long-term holding
HODLing is a very good strategy for those who don’t have time to weather a bear market. This strategy has its own difficulties and limitations, but it usually helps the trader get through it.
DCA (Average Cost Method)
Cost averaging is a strategy whereby traders and investors buy bitcoin in small increments over a period of time. Say you have $1,000 to work with, you can divide it into groups of $200. Then, for the next few weeks, you only need to buy $200 worth of BTC at a time. The purpose of this action is to minimize your potential losses due to price drops after your initial investment, while maximizing your potential gains when BTC value begins to recover.
Buy cheap
For traders and investors who have extra cash on hand and want to buy Bitcoin, you can take advantage of the current state of the market during this time. Of course, the risk of further declines in the price of Bitcoin remains. To get around this, some investors follow traditional strategies such as cost averaging. This practice limits the risk you face with each purchase, while maximizing your potential gains when Bitcoin prices rise.

We’re going to see that over the past decade, Bitcoin has proven that it’s here to stay. Its value may fall for a while, but every time Bitcoin finds a way to bounce back and even reach new highs. As long as we stay informed, keep an eye on the Crypto Fear and Greed Index, and continue to do our own research, dealing with a bear market should be a little easier.

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Bitcoin value will always rise

We’re going to see that over the past decade, Bitcoin has proven that it’s here to stay. Its value may fall for a while, but every time Bitcoin finds a way to bounce back and even reach new highs. As long as we stay informed, keep an eye on the Crypto Fear and Greed Index , and continue to do our own research, dealing with a bear market should be a little easier.

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