How Pullbacks Reshape the Strength and Weakness Pattern of the Crypto Market

Every pullback redefines the market’s strength and weakness. Previously, over-extended thematic coins and high-valuation projects tend to come under pressure first during a correction, while assets with solid fundamentals or liquidity advantages are more likely to attract capital back.

Structurally, this adjustment helps to eliminate short-term speculative bubbles and realign prices with genuine demand. For long-term participants, this “denoising” process is actually beneficial for identifying projects with sustainable value.

Additionally, the pullback phase amplifies differences among projects. Community activity, capital absorption capacity, and development progress are all tested during declines. Projects that rely solely on narratives often struggle to withstand emotional reversals.

From this perspective, pullbacks are not merely risk events but an important phase for market self-selection.