#Cryoto Correction
What does correction mean in
### **The meaning of correction in digital currencies**
**Correction** is a term used in financial markets, including the digital currency market, to refer to a temporary decline or decrease in the price of an asset (such as a digital currency) after a period of continuous rise.
### **Characteristics of correction:**
1. **Natural and healthy:**
- Correction is considered a natural part of market movement, as it helps calm prices after sharp increases.
2. **Rate of decline:**
- The decline is usually between 10% and 30% of the previous peak, but it remains less than to be classified as a major downtrend.
3. **Short-term:**
- It lasts for a short period compared to the long-term decline known as the bear market.
### **Why does correction happen?**
1. **Profit taking:**
- When investors sell their assets to take profits after a significant rise in price.
2. **A price increase too quickly:**
- A sudden and sharp increase may lead to unsustainable price inflation, leading to a correction.
3. **Temporary negative news or events:**
- Such as rumors or regulatory decisions that affect the market.
4. **Achieving supply and demand balance:**
- A price correction occurs when the market returns to normal levels after an unbalanced increase in demand or supply.
### **How to deal with corrections?**
1. **Support and resistance analysis:**
- Monitor support lines to see where the correction may stop.