#MarketPullback Pullbacks in cryptocurrencies have several characteristics that differentiate them from other market movements. The first and most important is their temporary nature. Pullbacks are short-term price movements against the prevailing trend. The temporary reversal is usually followed by the continuation of the original trend.

Another fundamental characteristic is the limited price drop during a pullback. The price drop is often relatively small compared to the overall trend, frequently ranging from 5% to 20% of the previous price movement. The limited drop distinguishes pullbacks from corrections or more severe market declines.

Many traders see corrections as potential buying opportunities. The temporary price drop provides a chance to enter or increase positions at a more favorable price, especially if the trader believes in the long-term potential of the cryptocurrency.