#MarketPullback

Imagine that a stock or cryptocurrency has risen from 100 dinars to 150 dinars. After this rise, the price dips a little and goes to 135 dinars. This decline is called a Pullback. It’s not a crash, just a small temporary correction.

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🧠 Why does a Pullback occur?

1. Profit-taking: Some people sell after making a profit, causing the price to drop a bit.

2. Temporary fear: Small negative news can cause a quick decline.

3. Natural correction: Markets never rise straight up; they need to correct from time to time.

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🤔 How do we differentiate between a Pullback and a Crash?

Element Pullback Crash

Duration Short (days or weeks) Long (weeks or months)

Retracement Percentage Usually 5% to 10% Often more than 20%

Reason Natural or psychological Major crisis or economic disaster