Arkham Guide: 6 Smart Ways to Turn Losses into Profits during Crypto Bear Market

Jakarta, Pintu News – The prolonged downturn in the crypto market has exacerbated fears across the industry, as plummeting asset prices erode portfolio values and worsen investor sentiment.

Amidst this uncertainty, Arkham has identified six strategic approaches that can help market participants navigate and profit from the ongoing crypto bear market.

6 Key Strategies for Dealing with a Bearish Market

Arkham explains that a bear market is a period where an asset’s price drops 20% or more from its new high and continues to move down over an extended period of time. In traditional markets, this downturn can last from weeks to years.

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In the crypto market, declines are often much more extreme due to high volatility. Arkham notes that it is not unusual for asset prices to plummet 70% to 90% from their peak value during severe bearish cycles.

“During a bear market, price movements are dominated bylower highs andlower lows, creating a clear downtrend across most time frames… Trading volumes often decrease as market participants exit their positions or choose to wait on the sidelines to avoid further losses. This reduced liquidity can exacerbate price movements, making them even more volatile,” the report states.

Arkham added that bear markets can create meaningful trading opportunities for those who apply disciplined risk management and the right tactics. The report highlights several approaches traders can use to manage risk exposure while potentially profiting from bearish conditions.

1.Short Selling

According to Arkham, one of the most common ways to profit from falling prices is short selling. This technique involves borrowing digital assets to sell at the current market price, then buying them back later at a lower price to return to the lender. The price difference becomes the trader’s profit.

However, Arkham warns that short selling comes with great risks. Since asset prices can theoretically rise indefinitely, the potential losses are unlimited.

“Therefore, traders should apply appropriate position sizing and use stop-loss orders to limit their risk,” the company wrote.

2.Options and Inverse Products

For traders looking for downside exposure with more manageable risk, Arkham suggests instruments such asput options and inverse products.

“Both of these products increase in value when prices fall, although through different mechanisms. Unlike short selling, these products have a limited risk of loss, meaning investors can only lose a maximum of their invested capital,” Arkham reports.

To illustrate, a put option gives the buyer the right (not the obligation) to sell an asset at a fixed price before expiration. If the asset price falls below thestrike price, the value of the put option will usually increase. Its main advantage is that the trader’s maximum loss is limited to the premium paid.

Meanwhile, inverse products are designed to move opposite to the performance of the underlying asset. If the asset goes down, the inverse product goes up. This often includes Inversa ETFs that track daily yields in reverse, allowing downside exposure without having to open a traditional short position.

3.Range Trading

Arkham also highlights range trading as a potential strategy during the less volatile phases of a bear market. When prices move between clear support and resistance levels, traders can try to buy near the lower limit and sell near the upper limit.

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According to Arkham, this approach is more effective insideways market conditions than during aggressive sell-offs, where price breakouts can invalidate technical ranges quickly.

4. Accumulation

Beyond active trading, Arkham emphasizes the importance of selective accumulation. The report asserts that accumulation strategies should focus on buying quality assets at low prices, rather than seeking instant profits.

“Instead of chasing immediate profits, this approach positions traders for the next bullish cycle. Disciplined accumulation during bear markets has historically yielded great returns for patient investors, although proper asset selection remains key to reaping future gains,” Arkham added.

5. StablecoinYields

For more defensive market participants, Arkham notes that stablecoin yield strategies can help generate profits while waiting for more favorable market conditions.

“While stablecoin yields tend to decline during bear markets, keeping capital in stablecoins while earning interest protects the asset from further declines, while gradually increasing the capital available for future opportunities,” the report reads.

6. Scalping and Day Trading

Arkham suggests that bear markets also create opportunities for scalping and day trading. These strategies focus on utilizing short-term price movements, instead of waiting for a long-term trend reversal.

Under volatile bear conditions, rapid daily price swings, liquidity gaps, and panic selling can create frequent entry and exit points. Arkham mentions that bear markets often have predictable patterns in certain trading sessions, allowing skilled day traders to reap small profits over and over again.

Finally, Arkham emphasizes that trading during bearish phases carries significant risks. Reduced liquidity can lead to wider spreads and slippage.

At the same time, accumulated losses can increase emotional stress, which increases the likelihood of traders abandoning their plans and neglecting discipline.

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*Disclaimer

This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities are subject to high risk and volatility, always do your own research and use cold hard cash before investing. All activities of buying and selling Bitcoin and other crypto asset investments are the responsibility of the reader.

Reference:

• BeInCrypto. How to Profit in a Bear Market: Arkham Shares 6 Key Strategies. Accessed on February 20, 2026