$BTC

A **market pullback** refers to a temporary decline in the prices of financial assets, such as stocks or commodities, after a period of upward momentum. Typically, a pullback is characterized by a decline of 5-10% from recent highs and is often seen as a natural part of market cycles. These corrections occur due to various factors, including profit-taking, changes in investor sentiment, economic data releases, or geopolitical events. Unlike a market crash, which is more severe and sudden, a pullback is typically short-lived and may be followed by a market rebound.

Pullbacks provide investors with opportunities to buy assets at a lower price, often attracting bargain hunters. However, they can also increase market volatility, leading to uncertainty among traders. Understanding pullbacks is crucial for investors, as they can help inform strategic decisions on timing and portfolio diversification, balancing risk while taking advantage of potential market gains.