#MarketPullback Market Pullback: What is it and how should an investor react?

In the world of cryptocurrencies, the market is constantly changing — sometimes it rises sharply, sometimes it falls sharply. One of these natural phenomena is the Market Pullback. This is a temporary decrease in prices following a period of growth.

What is a Market Pullback?

A Market Pullback is a temporary decrease in the price of an asset (for example, BTC or ETH) that occurs after an increase. This does not signify the beginning of a crash, as is the case with a market correction or a 'bearish' trend. The pullback usually lasts a short time and constitutes 5–10% of the previous increase.

Why does this happen?

There are several reasons:

Crowd psychology — fear of falling;

News or rumors that affect the market.

How to act?

Don't panic. A pullback is normal.

Analyze. Are there fundamental reasons for the drop?

Take the opportunity. Some investors buy on pullbacks when the price "drops."

Conclusion

A Market Pullback is like a short breather before a new sprint. For an informed investor, it is not a threat, but an opportunity to buy at a lower price. The main thing is to keep a cool head and monitor the analytics.