A market pullback is a short-term drop in the price of a stock, cryptocurrency, or overall market index after a period of upward movement.
Key points:
Size: Usually a decline of around 5–10% from recent highs (smaller than a correction or crash).
Duration: Typically lasts from a few days to a few weeks.
Cause: Can happen due to profit-taking, negative news, economic data, or short-term uncertainty.
Purpose: Often considered a healthy pause in a longer uptrend, giving the market a chance to reset before potentially moving higher.
Example: If Bitcoin rises from $50,000 to $55,000, then dips to $52,000 before climbing again, that’s a pullback.
If you want, I can also explain how traders use pullbacks to buy at better prices.
