Bitcoin Correction

Definition ∞ A Bitcoin Correction describes a significant downward price movement in the value of Bitcoin following a period of upward momentum. Typically, a correction is considered a price decrease of 10% or more from a recent peak. This market event is often a natural part of asset cycles, allowing the market to rebalance after rapid gains. It differentiates from a bear market by its shorter duration and its occurrence within an overarching bullish trend.
Context ∞ Bitcoin Corrections are frequently reported in crypto news, often prompting discussions among investors and analysts about market sentiment and future price trajectories. The situation often involves a reassessment of market fundamentals or macroeconomic factors influencing digital asset valuations. Observing these corrections helps market participants gauge volatility and identify potential entry or exit points.