Multi Week Correction

Definition ∞ A multi week correction is a sustained period of price decline for a digital asset or market sector, lasting several weeks or longer. This represents a significant pullback from previous highs, often driven by factors such as profit-taking, macroeconomic concerns, or negative regulatory news. Such corrections are a normal part of market cycles. They allow for price re-evaluation and consolidation.
Context ∞ Multi week corrections are frequently discussed in crypto news as analysts attempt to identify their causes and predict their duration. Investors monitor these periods closely for potential buying opportunities or to adjust their portfolio strategies. A critical debate involves distinguishing a healthy correction from the start of a prolonged bear market.