Crypto analytics firm Arkham has identified the onset of a bear market in the cryptocurrency sector, characterized by prolonged price declines, weak sentiment, and forced selling. According to Arkham, the current downturn is still in its early months, with Bitcoin having fallen over 50% this cycle. The firm highlights that crypto bear markets often see drawdowns between 70% and 90%, significantly deeper than the traditional 20% threshold. Arkham explains that during bear markets, prices form lower highs and lower lows, while investor sentiment turns sharply negative. Trading volumes typically decrease as participants reduce exposure, leading to increased volatility. Historical patterns show that these phases test investor discipline and market structure, with previous cycles in 2018 and 2022 following similar trajectories. Despite the challenging environment, Arkham notes that several trading strategies remain viable, including short selling and options-based approaches. The firm also points to historical recovery patterns, such as Bitcoin's rebound from $3,000 in 2018 and the recovery from a 76% drop in 2022, suggesting potential for future recovery, though no specific timeline is provided.