Market correction, a temporary drop for solid projects. Which dispenses panic and withdrawal from investment. Don't sell, hold. Relax! Over time, losses stop outweighing gains, and projects develop and solidify. WHEN THE PROJECT IS LEGITIMATE! To know if it is, you need to research and study it.
WHAT IS A CRYPTOCURRENCY MARKET CORRECTION?
A market correction is a temporary drop in the price of a cryptocurrency or the market as a whole, usually after a period of significant growth. It is considered a natural and healthy adjustment to balance the market.
MAIN CHARACTERISTICS:
Percentage Drop: Typically, a correction occurs when there is a 10% to 20% drop in prices compared to the last peak.
Cause: It can be caused by mass sales, profit taking or news that negatively impacts market sentiment.
Duration: Usually short-term, lasting days or weeks, but can vary.
WHY DOES IT HAPPEN?
Overvaluation: After rapid increases, prices become overvalued.
Profit-taking: Investors sell assets to secure gains.
Change in sentiment: Negative news or uncertainty can generate fear and selling.
IMPACT:
Opportunity: This can be a chance for new investors to buy cryptocurrencies at lower prices.
Risk: This can generate panic, especially among beginner investors.
This is a normal phase in volatile markets like cryptocurrencies and does not necessarily mean the beginning of a prolonged downward trend.
