$BTC The question often arises in the cryptocurrency market: is the price movement we see a trend reversal or just a short-term correction within the current trend? After all, the trading decisions of market participants depend on the correct interpretation.

A correction is a medium-term price movement against the main trend. The purpose of the correction is to partially "drop" the overbought or oversold market, after which the main trend continues. Corrections last from several days to 2-3 weeks and do not change the general direction of the market.

But a trend reversal is a long-term phenomenon when the price movement vector changes dramatically to the opposite. If it was growing before, it is now falling. And vice versa. When a trend reversal occurs in the market, this means that the market direction is changing for a long time.

To distinguish a correction from a trend change, analysts use different tools - volumes, volatility, graphical analysis. The main thing is not to rush to conclusions, but to collect enough data to understand whether we are facing a temporary rollback or something more.

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