$USUAL A correction in the cryptocurrency market is a natural phase in which prices temporarily retreat after a significant rise. This movement occurs for several reasons and can be considered healthy for the market. Here are some reasons for a correction before a new rise:

1. Profit Taking:

Many investors sell their positions to secure profits, especially after significant rallies, which creates selling pressure and causes prices to retreat.

2. Overbought:

After a period of growth, the market may become “overbought”, indicating that prices have risen too quickly and need an adjustment to balance supply and demand.

3. Re-entry of Large Investors:

Institutional investors or “whales” (large holders of cryptocurrencies) may wait for lower prices to buy again, driving another rise after the correction.

4. Testing Support:

Corrections allow the market to test support levels, consolidating the price and creating a solid base for a new upward movement.

5. Market Sentiment:

News, regulatory events or macroeconomic uncertainties can temporarily reduce optimism, causing prices to correct before a new positive cycle.

Corrections are normal and often signs that the market is preparing for a more sustainable movement, avoiding speculative bubbles. Therefore, for those who invest in the long term, it can be a buying opportunity.