Definition ∞ A short-term retracement is a temporary and relatively modest decline in the price of a digital asset that occurs within a larger upward trend. This price movement is typically a healthy market correction, allowing for profit-taking and the absorption of new buying interest before the primary trend resumes. It represents a brief pause in price appreciation.
Context ∞ Crypto news frequently reports on short-term retracements to explain temporary price dips within an ongoing bull market, reassuring investors that these are often normal market adjustments. These analyses help differentiate minor corrections from significant trend reversals, informing trading decisions.
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