🟡 What is a "correction" in the crypto market? 📉
A correction occurs when the price of a crypto asset falls between 10% and 20% from its recent peak.
But don't panic: it's a natural phase of the market.
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🔍 Why does it happen?
After a strong rise, many traders take profits, and the market adjusts.
This helps to:
✅ Avoid bubbles
✅ Decrease volatility
✅ Recalibrate the real price of the asset
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📊 Example:
• If BTC rises from $25K to $40K and then drops to $36K → that is a 10% correction.
• But if it drops to $30K (-25%), that could be a trend reversal or the start of a bear market.
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💡 Opportunity or alert?
A correction is not a sign of a crisis, but rather an opportunity to:
📈 Reassess your strategy
📉 Enter at a better price
🧠 Learn to manage risk
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⚠️ Don't confuse:
Correction ≠ Bear Market
The correction is brief and partial.
The bear market is deeper and sustained.
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👉 Final advice:
Corrections are part of the game. It's not about avoiding them, but understanding them.
