A market pullback in cryptocurrency refers to a temporary decline in price during an overall uptrend or bull market. It’s often seen as a healthy correction rather than a reversal, allowing the market to consolidate before resuming its upward trend. Here's a brief overview:
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Key Features of a Crypto Pullback:
1. Magnitude:
Typically, a pullback involves a price drop of 5%–20%, depending on the asset's volatility.
Larger drops may indicate a trend reversal rather than a pullback.
2. Duration:
Pullbacks are short-term, lasting a few hours to a few days in the crypto market.
3. Causes:
Profit-Taking: Traders locking in gains after a significant price rally.
Market News: