Market Correction
A drop of roughly 10% or more from a recent high, short of a full bear market.
A correction is a pullback, not a collapse. The rough convention is a 10 to 20% decline; past 20% and traders start calling it a bear market. Corrections are routine even in strong uptrends, shaking out leverage and resetting overheated sentiment.
Crypto's are sharper than stocks'. A 30% slide can happen in days. The hard part is telling a healthy correction from the start of something worse, which is only clear in hindsight.
Related terms
A prolonged stretch of falling prices and weak sentiment, usually marked by a drop of 20% or more.
DipA short-term drop in price, often viewed by buyers as a discount within a larger uptrend.
VolatilityA measure of how sharply and how often a price swings, in either direction, over time.
Dead Cat BounceA short-lived rally inside a larger downtrend that fades fast and gives way to more selling.