Correction is a situation where the price of an asset falls at least 10% from its previous price. Corrections are usually followed by recoveries, but sometimes they can lead to prolonged periods of decline. This can create a bear market where prices drop even further.
In the cryptocurrency market, corrections are significantly more frequent than in other markets as it is characteristically more volatile. However, recoveries also happen frequently. The overall trend of most major coins since the inception of the market in 2009 has been positive and bullish.
For instance, Bitcoin’s (BTC) price grew from as little as $0.003 per coin in 2010 to more than $19,000 in 2020, despite at times suffering corrections of as much as 50% in the span of a single day.