Global Multi-Asset Bear Market Cycle: How Does Wave Theory Scientifically Quantify Downward Trends?

A critical turning point is facing global assets right now. Multiple markets—gold, silver, A-shares, and more—are entering a bear market in sync. This is not a coincidence, but a cyclical phenomenon that can be quantified. Many investors can feel this change, yet they lack a scientific framework for judging a bear market. This article uses tools such as wave theory to help you understand the essence of a bear market—and how to find opportunities within it.

Scientific Definition of a Bear Market and Quantitative Methods

Traditional definitions of a bear market are often vague—“a bear market is when you lose money for the long term.” But this description is not actionable and cannot guide real trading.

Wave theory offers a more precise framework. In this framework, the narrow definition of a bear market is: the correction that occurs after a 5-wave impulse of a degree of Great Wave or higher has completed. This definition works because it is based on objective laws of price movement, not subjective feelings.

In addition to the narrow bear market definition, there are more detailed classification dimensions. We further quantify global-asset bear markets into four tiers:

• Deep Bear: the correction after a 5-wave impulse of a degree equal to or higher than the cycle degree completes; it has the widest impact range and the longest duration
• Big Bear: the correction after a 5-wave impulse of the great-degree completes; it usually lasts more than 6 months
• Mid Bear: the correction after a 5-wave impulse of the intermediate degree completes; duration is counted in weeks
• Small Bear: the correction after a 5-wave impulse of the minor degree or more detailed wave degree completes; the volatility range is relatively limited

Based on this quantitative system, we can determine which bear-market stage different assets are in right now: the Peter Index, gold, and silver are in a deep-bear state, while the U.S. stock market (beautiful stocks) and certain growth assets are in a big-bear state.

Comparing the Three Stages of a Bear Market and Trading Approach

A bear market is not static—it goes through three distinct development stages, and each stage has its own performance characteristics and trading opportunities.

In the early stage of a bear market, the typical feature is that the index decline is not yet very obvious, but risk assets such as small-cap stocks and theme stocks have already started accelerating downward. This is the beginning stage of risk release. Most investors still hold illusions, believing it’s only a correction.

After entering the mid-stage of a bear market, the picture changes completely. The index drops sharply; small-cap stocks also fall sharply, and the market sees broad-based selling. This is the stage with the highest risk—but also the greatest opportunities. Investors brave enough to position themselves at this time may achieve the most substantial returns.

By the late stage of a bear market, the downward pace clearly slows down. The market enters a phase of repeated choppy consolidation and slow base-building. At this point, index volatility tends to become calmer, but individual stocks begin to diverge—some high-quality assets start building bases and rebounding, while some risk assets continue to drift lower slowly.

Bear-Market Short-Selling Strategy in Practice: From 11 Straight Wins to Precise Direction

Many people think that in a bear market, there’s nothing you can do. This is a misconception. On the contrary, a bear market is the best stage for testing a trader’s true skill level.

In recent real trading, we executed 11 short positions. All 11 were profitable. Aside from 1 trade that was added short mid-way, the other 10 shorts were precisely placed at the stage highs. The assets involved include XAU (gold), XAG (silver), Pixel, Dego, Kite, Pippin, Resolv, Lyn, Power, Enso, ZEC, and others.

What does this track record indicate? Short-selling in a bear market is not gambling—it is systematic execution built on wave analysis. When the 5-wave structure is completed, the sell signal is clear and unambiguous. The bear market has given us a clear short-selling window; the key is to recognize that window.

Gann Theory and Forecasting Turning-Point Nodes

Wave theory focuses on recognizing price patterns, while Gann theory emphasizes the cyclic nature of time. Combining the two produces stronger predictive power.

Based on calculations from Gann’s time-cycle theory, the next several key turning-time nodes are: March 21, 2026, and March 26 to March 27, 2026. Around these times, the market will very likely experience important directional changes. This is not mystical metaphysics—it is a repetition of historical patterns.

Wave Movements of BTC and ETH in a Bear Market

As of March 28, 2026, Bitcoin (BTC) is quoted at $66.95K, with a 24-hour increase of +1.36%. Ethereum (ETH) is quoted at $2.02K, with a 24-hour increase of +1.89%.

As early as the wave analysis on March 13, we predicted that BTC would test a specific price level within a certain time window. The subsequent move fully validated this judgment. Both the target point reached on March 13 and the secondary target point reached on March 16 were achieved one by one. This shows that wave structures have strong predictive power for the rebound phases of mainstream coins.

ETH has been the same way. The $2,204 predicted on March 13 and the $2,3116 achieved on March 16 were precisely verified by the market. This consistency is not a coincidence—it comes from a deep understanding of wave-structure formation.

Bear-Market Performance Across Multiple Assets: Gold, Silver, and Comparative Analysis of Individual Stocks

Gold price action: According to the prior forecast, after the gold rebound reached the secondary high peak, it pulled back—fully in line with the bear-market pattern of repeated base-building. The current gold price is consolidating around $4,497.

Silver price action: The forecast on March 10 that silver would rebound to the secondary high peak was also validated. After the rebound ended, it entered a new round of downward cycle.

Key A-share individual stocks:

• Huahong Semiconductor: The recent forecast laid out a rebound within the 75.4–81.85 range, with the lowest rebound point at 80.4. This prediction hit precisely again. The hit rate of multiple forecasts is close to 100%, indicating that wave theory can grasp the rebound rhythm of high-tech stocks with extremely high accuracy.

• Blue Focus, Lei Ou Shares, Sailder Intelligent, and other growth stocks: They all show typical individual-stock characteristics of a bear market—while the overall market moves downward, these stocks fall more, and during rebounds they are also more likely to hit technical pressure levels.

• ZEC (Z-cash): Even this privacy coin has displayed typical weakness in the bear market.

How to Avoid Becoming a “Sucker” in a Bear Market? Cultivating the Ability to Think Independently

Learning wave theory, Gann cycles, short-selling techniques, and other knowledge is important, but even more important is internalizing this knowledge into your own analytical and decision-making abilities. This is what “forging steel requires one’s own strength” means.

Many investors like to blindly follow others: if someone says to buy, they buy; if someone says to sell, they sell. In a bear market, this behavior often means entering at high levels and cutting losses at low levels. To avoid becoming a “sucker,” the key is to develop the habit of independent thinking:

1. Learn theoretical frameworks: Understand the logic behind analytical tools such as wave theory and Gann cycles, rather than just memorizing a few slogans
2. Validate historical cases: Review past price action to see how these theories predicted prior market moves
3. Test in real practice: Use small capital to execute trades and test whether your understanding is correct in the real market
4. Build your own system: Gradually form your own trading rules and risk-management framework

A bear market is exactly the best time to train these abilities. Because trends in a bear market are clearer and signals are more distinct, making it easier to judge the reasons for success or failure.

Summary: Understand This Cycle with a Scientific View of the Bear Market

Global multi-asset markets entering a bear market is both a risk and an opportunity. The risk comes from people who don’t understand bear markets making wrong decisions at the wrong time. The opportunity comes from those who master bear-market规律 and can plan positions with precision.

Wave theory provides a scientific framework for understanding bear markets, and Gann theory provides time tools for forecasting turning points. Together, they can significantly improve your accuracy in market anticipation. But all of this is conditional on your willingness to spend time learning, understanding, and practicing—so that you ultimately develop your own independent thinking ability. That is the real value.