#MarketPullback

A pullback refers to a temporary and moderate decline in asset prices (stocks, cryptocurrencies, etc.) after an upward trend. It is different from a crash (a severe drop) or a bear market (a prolonged downtrend).

Key Features:

Short-term: Typically lasts days or weeks.

Moderate drop: Usually between 5% to 10% from the recent peak.

Causes:

Profit-taking by investors (taking gains).

Negative economic news.

Technical market adjustments.

Example in Cryptocurrencies:

"Bitcoin experienced an 8% pullback after hitting $70,000, but analysts believe it’s a normal correction before resuming its uptrend."

What to do during a pullback?

Opportunity: Some investors buy the dip (buy low to sell high later).

Caution: Don’t mistake it for a trend reversal (use technical/fundamental analysis).