$BTC
โ Correction
Calming the prices after sharp increases.
๐ Rate of Decline
Typically, the decline ranges between 10% to 30% from the previous high, but it is still small enough not to be classified as a major downtrend (like a bear market - Bear Market where the decline exceeds 20% and may last for months or years).
Short-term:
The correction lasts for a relatively short period compared to a bear market.
Causes of Correction
Taking Profits
After a significant price increase, investors sell their assets to realize profits, creating downward pressure on the price.
Very Rapid Increase
Sudden and sharp increases can lead to unsustainable price inflation, necessitating a correction to bring the price back to more realistic levels.
Temporary Negative News or Events: Such as rumors, or regulatory decisions affecting the market, or even global economic events.
โ Correction
Calming the prices after sharp increases.
๐ Rate of Decline
Typically, the decline ranges between 10% to 30% from the previous high, but it is still small enough not to be classified as a major downtrend (like a bear market - Bear Market where the decline exceeds 20% and may last for months or years).
Short-term:
The correction lasts for a relatively short period compared to a bear market.
Causes of Correction
Taking Profits
After a significant price increase, investors sell their assets to realize profits, creating downward pressure on the price.
Very Rapid Increase
Sudden and sharp increases can lead to unsustainable price inflation, necessitating a correction to bring the price back to more realistic levels.
Temporary Negative News or Events: Such as rumors, or regulatory decisions affecting the market, or even global economic events.