A market correction is basically referred to as that time in the market where the asset takes a quick dip in its price by at least 10% from its recent high. These correction periods are short-lived and are temporary pullbacks. This is done to correct the overreaching price of the asset.

A correction is quite visible on the price charts of the assets such as crypto, stocks, or indexes. With corrections of more than a 20% dip, the temporary phase might last for a longer time than expected and develop into a bear market if the price of the asset continues to fall. Crypto market experiences more frequent market corrections due to the volatile nature of the crypto assets.

Market corrections serve as opportunities for investors who wish to purchase high-value assets at fairly lower prices. These corrections often lead to rising in the price of the asset sometimes even beyond the last high set by it. It is always advised to leverage trading tools such as limit orders and stop-loss orders as no one can be sure of the trend of the market until it is complete. One must do their own research before making any investment.

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