Bears sell assets with the hope that they will buy them back in the future for less. They encourage the price to fall and buy the asset back before the price begins to rise and the process begins again. Profit is determined by subtracting the lower purchase price from the higher sale price.
If bears become more active, the price of the asset begins to fall. This trend is called “bearish” – it’s an analogy based on the way a bear attacks by swiping its paw from high to low.
The confrontation between bulls and bears on any asset occurs every second. This change is also reflected in the chart.
