#MarketPullback #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 Market Pullback, or market retracement. This is a temporary decrease in prices after a period of growth.
What is Market Pullback?
Market Pullback is a temporary decline in the price of an asset (for example, BTC or ETH) that occurs after an increase. It does not mean the beginning of a crash, as in the case of a market correction or a 'bearish' trend. A pullback usually lasts for a short time and constitutes 5–10% of the previous rise.
Why does this happen?
There are several reasons:
Crowd psychology — fear of falling;
News or rumors that affect the market.
What to do?
Don’t panic. A pullback is normal.
Analyze. Are there fundamental reasons for the decline?
Take the opportunity. Some investors buy during pullbacks when the price 'drops'.
Conclusion
Market Pullback is like a short rest before a new race. For an informed investor, it is not a threat, but an opportunity to buy cheaper. The main thing is to keep a cool head and monitor the analytics.