Recently, the Crypto Assets market experienced a slight pullback. The price of Ethereum dipped to around 3500 USD, while Bitcoin also touched a low of around 117000 USD, with mainstream Crypto Assets generally falling by 5% to 10%.

It is worth noting that alongside this pullback, the contract market saw over $500 million in liquidations, with long positions accounting for $380 million. This data actually brings some positive signals to the market, as it seems more like a cleanup of overly aggressive long positions, paving the way for subsequent increases.

Experienced traders are aware of the phenomenon of "bull markets often followed by sharp falls." The volume of liquidations in contracts can serve as an important indicator of market direction. Based on past experience, risk signals in a bull market typically arise when daily liquidation volumes exceed $1.5 billion. Considering the growth of the current crypto market's total market capitalization, this threshold may expand to $1.5-2 billion. It is worth noting that if there are two or three consecutive occurrences of billion-level liquidations, it may indicate that the market top is approaching.

Looking back at the scale of the $500 million liquidation, there is still a considerable distance from the $1.5 billion warning line. Therefore, this pullback seems more like a normal adjustment in the early stage of a bull market, which is beneficial for clearing out the weaker bulls in the market and creating conditions for the overall market to rise again.

When assessing market trends, the market capitalization share of Bitcoin is an important reference indicator. Investors can easily check this data through various trading platforms and data websites.

In a bull market, most crypto assets may welcome a new round of increases. The specific increase is influenced not only by the overall market and capital volume but also by the willingness of the main funds. Although the price trend of a single coin is difficult to predict accurately, grasping the rhythm of the overall market, especially accurately judging the trend of Ethereum, can provide guidance for operating other crypto assets.

In the early stages of a bull market, it is advisable to hold some small market cap coins; however, once there are obvious signals of a top, whether it is mainstream coins or small coins, one should consider exiting in a timely manner without hesitation.

Overall, this market pullback seems more like a short pause in a bull market, preparing for the next round of increase. Investors should remain vigilant, closely monitor market changes, and while seizing opportunities, also pay attention to risk management.