#MarketCorrectionBuyOrHODL Market Correction in Cryptocurrency: What Is It and How to React?

Market correction is a natural phenomenon where the price of an asset decreases after significant growth. In the cryptocurrency market, corrections are often perceived as a sign of instability; however, they play an important role in maintaining balance between supply and demand.

Causes of Correction

1. Profit-taking. After a sharp rise, investors start selling assets to lock in profits.

2. Negative news. Regulations, hacker attacks, or other events can provoke panic.

3. Technical factors. An overheated market with abnormally high indicators often needs to 'cool off'.

How to Recognize a Correction?

• The price of the asset decreases by 10–30% from a recent high.

• Trading volumes decrease, and market sentiment becomes more cautious.

Reaction to Correction

1. Do not panic. A correction is not a crash, but a temporary price decrease.

2. Conduct an analysis. Ensure that the decline is caused by market factors, not fundamental issues with the asset.