Not every market drop is a crash. In crypto, price pullbacks are common and often misunderstood.
What Is a Market Correction?
A correction is a temporary decline after a strong move. It helps the market cool down and reset.
Key signs:
Gradual price drop
No major negative news
Strong support levels hold
Market sentiment remains mixed, not panicked
Corrections are a normal part of healthy markets.
What Is a Market Crash?
A crash is a sudden and aggressive sell-off, usually driven by fear.
Key signs:
Sharp price drops in a short time
Panic selling across most coins
Negative news or unexpected events
Support levels break quickly
Crashes are rare but emotionally intense.
Why This Difference Matters
Traders who mistake corrections for crashes often sell too early. Understanding the difference helps protect capital and avoid emotional decisions.
Final Takeaway
Most red days are corrections, not crashes. Staying calm and patient is often the smartest move.
In crypto, reaction creates losses — understanding creates survival.