Do you know the difference between a crypto crash and a crypto correction? AntolinWriter breaks down both the technical and fundamental reasons driving them and defines the differences:
When the overall crypto market declines, it’s common to see the terms “crash” and “correction” used more or less interchangeably. The two words, however, actually mean different things.4 Things to Do in a Crypto Bear MarketA crash is widely regarded in traditional finance as a drop of over 10% in price over the course of a single day.
From a technical perspective, we can use charts to visualize and define a crash. In the finance and crypto markets, technical analysts tend to use moving averages on a chart. In the chart below, we see ether crashing. Ether closed below the 50-day moving average several times before crashing on Dec. 4, 2021.
chart, which captures the price movements of the overall crypto market, as shown in the charts below.These two examples show crashes occurring in conjunction with a moving average and high selling volume, but we also recognize the close price correlation of other cryptocurrencies with bitcoin and ether.
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