Bitcoin Forum

sometimes i hear about :coin price (or market) correction  term ,  What is the precise definition of this term? When and how does it happen? And why?

I don't know whether what you are trying to ask is clear from the way you have put it.


Correction is when price has gone expected price range. It can go bearish or bullish but I'm sure it is usually used when it has gone up above price range.

Usually when there is price spike and it tries to retrace back to normal price.


There could be market over bought, this could be for a long time or short time (just as we saw around December with bitcoin hitting its ATH and started retracing in January) and it could retrace to normal with time.


Market sentiment can be one of the reasons.
Market sentiment is the movement of price with or without a clear reason. It could be for the love of a product, empathy, sympathy etc.

Thank you .. I think you mean that the correction of the price occurs when the rise or fall of prices has happened suddenly and without objective reasons and no price stability  for long periods ... right?

The rise that happens suddenly without any reasons are what we called pump. If you are going to read threads on discussions for bitcoin and altcoins or even their speculations, you'll see people saying that word at all times.

And when the fall comes suddenly that's what we are calling dump.

Stock market term, one of the many borrowed by crypto traders to take on a life on their own.

As Gozie51 says, it refers to the reverse price movement when the stock (or in Bitcoin's case, Bitcoin price) has been overvalued, typically during a speculative bull run or... if you believe in crypto terminology, a pump. In other words, the price is moving back towards its "correct" value.

I think for Bitcoin or crypto, it's been used for the opposite direction too (ie. when oversold, price corrects upwards).

Some believe we're in the midst of a long-term correction.

Coin price correction I think is what they call it when the price of BTC or any altcoin suddenly fly way up and then a day later the price dips and back up and dips again till the price go low almost back to its previous price before the pump. It does happen every time BTC goes up for about 10%. Last year the price reach up to $20k and not its $6k, you can consider it price correction but some call it the bottom.

Here:


Source: https://www.investopedia.com/terms/c/correction.asp

If you read more, you will learn many things: How Cryptocurrency Prices Work, Explained (https://cointelegraph.com/explained/how-cryptocurrency-prices-work-explained)

many thanks, so we can say in this case that dump=price correction ...

if bitcoin price is in the midst of a long-term correction ,so its expected long-term price will be almost half of the current price ... Is that what u have meant ?

Many thanks and appreciation to you brother and all brothers who participated in answering my question  :-*

I think that the price of the coin suddenly goes up or down and does not have the right reason. I think they will pause to calculate it all. I myself don't really understand the language that traders often use to discuss the trading plan.

Correction can always happen in both ways. Market can always correct to the upper side or the down side depending on the direction the market is currently in. usually, if a market is oversold, there is always a little bit of retrace to the upper side which also differs in the way you see it depending on the time frame you are looking at, and the same thing too happens with an overbought market as it moves in a corrective market to the downside to find a support.

Price does not necessarily have to move rapidly to the upper side before it corrects. It is just a way of the market trying to do a temporary reverse or retrace due to the market being in an over valuated position which in this case could be considered as overbought. It is usually short or could be a long correction as the case may be, but that depends on you and what you are monitoring when it comes to the market trend.

Stock market and cryptocurrency market are usually the same especially trading in crypto are just like the stock market trading. Price correction means when the prices falls one day and you see raise the very next day, it is called price corrections. These days there are so many corrections in bitcoin price. Yesterday the price was about $6400 and today it is $6200 and tomorrow it may rise again. This is called price corrections.

Is it logical to call this situation " price correction " ? i think , This description will be correct if it happens once or twice during one period and after that the prices move up or down at the normal rate ... But in the case of this daily or weekly ups and downs at the same levels and for long periods, where is the correction in this case? I think it would be better here to describe this situation with "volatility" or "instability", rather than "correction"... Do you agree with me?

This term, in my opinion, is better understood in terms of the positive aspects. The market changes positively and improves upon various factors, positive information or any other country related to cryptocurrency and accepts or sees it. Same thing as XRP right now. That is the general effect of psychology and community.

The term volatility is the appropriate word for the price changes in the crypto currency but it happens because of the change in the demand or the supply which can be called as instability too.

the definition of correction is something that changes, in this case the coin can be corrected to a higher value or lowered but this can be called fair in the world of marketing because the market has time to advance and there is time to decline.

what about some analysts  who say that bitcoin price is in the midst of a long-term correction.i think they mean that its price will go lower than its price this days , so they use "price correction " term to describe the negative aspects too .

It actually depends on the way everyone wants to see it, it could be a short term correction or a long term correction as the case may be, and what we are seeing now certainly is a long term correction, looking at the number of months we have been in the bear trend after last year's bull run.

It was expected, it is normal and I only see it as an opportunity for those who are smart to be buying at a lower price. Simply, the idea for any smart investor is to buy when people are fearful and sell when people are getting greedy.

A market correction is a term normally used for a decrease by at least 10% of the market value which means any decrease with 10% and above, can be considered as a correction, so I guess it is a better word to use for it and at the same time, volatility is just another term that certainly works with the nature of the market or we could just say it is the characteristics of the market.
Correction happens after a temporary upswing in the market which is what we could see from last year and the correction we are having now.

Yeah you are right; simply I can say that ups and downs in the price for short periods is called price corrections. You can also use price volatility and price fluctuations. These all terms are used when the price goes up and down again and there is no stability in the price. You can also use the word variation in the price, but variation to some extent is different from correction.

I think correction takes place when the devs believes that the price of a particular asset or so its being valued more than the rate its supposed to the valued. So I just think that the price of Bitcoin bubbled too much and got to a very high price more than what it’s meant to be and that’s why the devs has chosen to take action and put it to what it’s meant to be. But that doesn’t stop another price bubble from taking place.

Thank you and thanks  to all those who responded !!  I think that your answer Summarizes the typical answer to my query. :)

Corrections will always be part of every market and there is certainly no way we can run away from it, and now this can differ based on the condition of the market most of the time. For instance, we have had some pretty good healthy corrections for a while now and there is a possibility to start seeing some growth, but the main idea of correction is to find a balance for the market to continue its uptrend and it is always a good time to buy more at the end of the corrections anyway.

I would not say the devs in particular, it could be the whales or whoever, but most of the time, the market is always driven to  a state in which it gets off the hook and then you see it reaching some overbought stage and in cases like that, when the power tends to dropdown, correction is always imminent. Corrections are always temporary and not certainly supposed to be for long as long as the market eventually tends to find a bottom eventually.

I can say that , based on all of the above, the correction means the return of the coin price to the real support or resistant area , which represents the lowest real value of the price of this coin ... For this, any price dropping  below that price is not possible and the price will certainly rise up later ... is this a good description ? ;D

It's the value of the all coin price. So people check the value then invest. Market value is important of the all project business. If the value is down price also down. Most of the country business in the marketplace. It helps to connect with all country and join to work for the business improvement. The market is important for all business. It good for the people get more information from the marketplace. So plan to invest, Then easy to get more profit.