The difference between market pullback and market correction lies in the duration and intensity of the price decline:

1. Market Pullback

What is it? A temporary drop in prices within an overall uptrend.

Cause: Often triggered by profit-taking or short-term news.

Duration: Usually short (days or weeks).

Recovery: The market typically resumes its upward trend quickly.

Example: An asset rises 30% but drops 5%ā€“10% before climbing higher again.

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2. Market Correction

What is it? A more significant and prolonged decline, often around 10% or more, to adjust prices to fairer levels.

Cause: Overvaluation, economic uncertainty, or structural market changes.

Duration: Can last weeks or months.

Recovery: May not always return to the previous trend, potentially signaling a cycle shift.

Example: The market grows excessively and then corrects to more sustainable levels.

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Simple Summary:

$BTC