Talk about choosing what kind of strong coins to buy the dip
Many people have the idea: to pick up the coins that performed best during the pullback, and wait for the market to recover to enjoy a larger rebound. The logic seems completely reasonable. But in reality, many people who follow this approach end up losing money. Why?
The key point is that when you buy, you need to distinguish the reasons for the decline: is it dragged down by the overall market, or is the coin itself already weak and just falling with the trend? The difference is significant. For example, suppose Coin A previously rose by 50%, then the momentum began to weaken and even entered a high-level consolidation. At this time, the overall market happens to crash. Although the long-term candlestick chart is still green, it has already weakened—spot buying cannot keep up, and subsequent rises mainly rely on contracts to support it. This type of coin may not necessarily recover even when the overall market warms up, and the rebound strength is usually very limited.
In contrast, those coins that are strong in momentum during a rise, only passively adjusting because of market drag, are the real strong coins. When the market hits the bottom and rebounds, they often explode first, and the rebound amplitude is much larger than that of ordinary coins, because the narrative and funds haven't exited yet. Once the overall environment improves, it will continue to drive them.
So buying strong coins is not wrong, but you need to clarify whether they are truly strong or just pretending to be strong. The market has shown everyone countless times that many coins lie still after a pullback, while a few truly strong candidates can take off directly.
Many friends ask whether a certain coin is a strong coin, whether it can be bought during a decline, what coin you should buy, and if you can buy it. I won't be responding to this in the public forum for the time being. I cannot take responsibility for this, to avoid getting into trouble. I got criticized for analyzing the market trends yesterday and I'm scared of being criticized. $BTC