#BTCOutlook In the cryptocurrency market, a common question arises: is the price movement we see a trend reversal or merely a short-term correction within the current trend? The correct interpretation is crucial for the trading decisions of market participants.

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

A trend reversal, on the other hand, is a long-term phenomenon where the direction of price movement radically changes to the opposite. If it was rising before, it is now falling, and vice versa. When a trend reversal occurs in the market, it indicates that the direction of the market is changing for a long time.

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