#MarketPullback
Pullback occurs when:
1. Price has increased too quickly: Short-term investors take profits, leading to increased selling pressure.
2. Reaching technical resistance: Price encounters a strong resistance area (e.g., MA, trendline, Fibonacci…) causing downward pressure.
3. Negative short-term news: News, economic data, or short-term FUD causes a price reaction downward.
4. Weakening trading volume: The upward momentum lacks strength, allowing for a temporary price correction.