What are the reasons behind the market crash?

A sudden pullback in the trading market often leaves investors in doubt. However, trading with understanding can also allow profit from such movements!

🔍 What causes a pullback?

1️⃣ Profit booking – After a big move, many traders take profits, resulting in temporary price decline.

2️⃣ Technical resistance – When price reaches important resistance levels, it pulls back.

3️⃣ Macro news or events – Market shakes with major economic news including Fed announcements.

4️⃣ Overbought condition – Can be identified using RSI or other indicators to see if the market has risen excessively.

📊 What to do during this time?

✅ Check if the trend is intact.

✅ Identify strong support levels.

✅ Look for entry opportunities during pullbacks (buy the dip).

✅ Use stop-loss to prevent excessive losses.

📌 Example:

If BTC rises by 5% and then pulls back by 2%, that could be a pullback — without breaking the trend.

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