What is Market Pullback?

Market Pullback is a temporary downward movement in the price of an asset (such as a stock or cryptocurrency), which occurs after a strong rise.

💡 Imagine you are climbing a mountain; it's normal to pause for a moment to catch your breath before continuing to climb. This is exactly what's happening in the market!

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💥 Why does Pullback happen?

🔹 Profit-taking: After a strong rise, some traders sell to take profits.

🔹 Investor hesitation: Some expect a correction or temporary drop, so they hold back.

🔹 Sudden news or events: Can cause temporary fear.

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⏳ Is it dangerous?

Not always.

✅ Sometimes it presents a temporary buying opportunity (Buy the dip).

❌ But if the decline continues strongly, it may turn into a larger correction or even a bear market.

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📈 How do I deal with it as a trader?

🔍 Monitor support and resistance levels.

🧠 Don’t act on emotion; use technical analysis (like RSI or moving averages).

🎯 Ensure you have a clear risk management plan.

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🧠 Quick example:

If Bitcoin rose from 50,000 to 60,000 and then pulled back to 57,000 = this is called a Pullback.

But if it dropped to 45,000 for example = this is considered a sharp correction or partial collapse.