The performance of different cryptocurrencies is very apparent after each significant pullback.
Identifying strong and weak cryptocurrencies: Coins that rebound quickly typically show inflow of funds, often indicating that large investors or market makers are buying in at low prices.
Market trend: Without clear positive drivers, retail investors find it difficult to push up coin prices on their own. Strong cryptocurrencies can maintain a continuous rise.
Capital allocation strategy: Smart investors will focus their capital and wait to increase their positions in strong cryptocurrencies during pullbacks.
Bull market outlook: Bull markets tend to last longer, with strong cryptocurrencies continuing to lead, while weak cryptocurrencies may only see brief activity at the end of the bull market.
Avoid heavy positions in weak coins: Weak cryptocurrencies have little chance of sustained increases, and heavy positions carry significant risk, making it easy to miss out on more promising coins.