X Space Review: Trader's Journey, Unveiling How to Achieve "Stable Happiness" in the Crypto Industry

The crypto market is full of twists and turns, with hidden secrets even during the bull market. On December 17, BlockBeats, together with Gate.io's Product Manager Chloe, senior trader LOYAL Lu Yao, and the top community manager on Earth Ice, discussed how they achieved "steady happiness" in the volatile market. How did traders make "overflowing gains," and what were their experiences?

In the past couple of weeks, the market has seen drastic fluctuations, with Bitcoin experiencing midnight plunges followed by rebounds. Many have experienced panic selling, stop-loss, and even liquidation, while some have managed to profit from buying the dip, leading to a mix of emotions. In a bull market, trading frequency has increased, leading to more trading reflections and insights.

Therefore, today, BlockBeats has invited three heavyweight guests who have weathered many market storms and have their own trading strategies. They will share with us how to face extreme market conditions, manage risks, discuss the current favorite tracks, and even how to identify the next hundredfold or more opportunity.

BlockBeats: Please introduce yourselves.

Chloe: Hello, everyone, I'm Chloe, a Product Manager at Gate.io. I'm delighted to be invited to today's roundtable discussion. You may already know Gate.io as one of the world's leading cryptocurrency exchanges. We are committed to providing a secure, convenient, and innovative trading experience for global users. As a Product Manager, I am involved in the innovation and optimization of Gate.io's products and constantly monitor market trends and user needs to ensure that we provide professional tool support for traders. Recently, we launched the official Twitter account for Gate.io's products, so feel free to follow us. We will continuously update product feature introductions and technological innovations. I hope today's sharing will inspire you as we explore how to achieve "steady happiness" in the crypto industry.

LOYAL Lu Yao: Hello, everyone, my name is Lu Yao, and I come from a Singapore-based market-making company. I am honored to participate in today's Space. Let's explore how to gradually double our assets and hope we can discuss and learn together.

Ice: Hello, everyone. I'm Ice. I've been deeply involved in the cryptocurrency field for many years, participating in research and investment in various projects and possessing a certain level of market insight. I am more active in the primary market.

BlockBeats: Last week on December 10th, BTC experienced a sharp drop in the early morning, leading to a very tragic liquidation situation that far exceeded the "March 12." Fortunately, Bitcoin quickly returned to the $100,000 mark just two days later. Could our guests please review the market sentiment and public opinion on that day? What was your initial reaction at the time? Or perhaps the guests made some high-end moves, such as liquidation, stop-loss, or dip-buying operations – could you share with us?

Chloe: In the early morning of December 10th, I remember BTC briefly retreated to around $94,000 and then quickly rebounded to around $96,000, a process that lasted about 10 minutes. As far as I recall, after December, Bitcoin experienced two large short-term declines, but this drop was a new high in nearly two years. My first reaction was that Bitcoin was undergoing a pullback as it had surpassed $100,000, and long-term holders may have started to take profits, which is a normal occurrence during a Bitcoin bull market. Such short-term pullbacks help the market digest previous gains and set the foundation for future trends. However, due to my conservative trading style, I basically didn't place many orders after Bitcoin broke $100,000, so I didn't have long or short positions during the flash crash that day.

LOYAL Louyao: When BTC experienced a flash crash last week, I remember being with friends at that time and didn't notice the incident. When I got home, I saw discussions on my friends' social media and Twitter. The sudden plunge was indeed impressive, and at that time, most retail investors in the market were very afraid, fearing that the price would directly drop to $80,000 or $70,000, causing many to sell off immediately. Some Web2 bosses, especially real estate tycoons who entered the market recently, bought BTC at high prices and were very scared during the crash, feeling like they had been slashed. In the morning, I learned that some friends' liquidation scale even reached $1-4 million, and they sought professional traders to help with the transactions.

I believe this flash crash was a result of large-scale liquidation by big funds. However, for those who are optimistic about Bitcoin, they should remain calm during sudden drops and not panic just because BTC experienced a sharp decline. Personally, when opening positions, I always set take-profit and stop-loss orders to avoid excessive losses. When funds experience significant fluctuations, I recommend that everyone consider buying in batches. Ideally, the market will be able to adjust promptly, allowing some people to regain their composure. The bull market is still ongoing recently, and everyone should remain rational, operate based on the overall market conditions, and avoid blindly following trends.

Ice: In my impression, the main reason for Bitcoin's price plunge on December 10 was largely due to the news about quantum chips. With the market itself in a correction phase, this news may have exacerbated the panic. People in our community are online 24 hours a day. At the moment of the plunge, everyone in the group was shouting about the plunge, and then they proceeded to analyze the reasons behind it.

In fact, compared to the price drop on December 10, I think the price drop on December 5 was more severe. On December 5, Bitcoin instantly dropped to the $90,500 level. It seems that there was no specific news triggering the plunge at that time, at least I personally did not find any negative news. Around December 5, if you were a frequent trader, you could actually observe some retracement signals. During that period, the contract fees had already risen significantly, and a large number of locked arbitrage combinations were essentially exchanges subsidizing trades. With such high contract fees, the price cannot be sustained in the long run. So, I only opened small positions, not as aggressively as at the end of October or the beginning of November and December. I am also grateful that I did not open large positions, so there was no risk of liquidation. At that time, the group was discussing other projects. When I saw the plunge, I promptly bought a small position, about 10%, and then made some profits through the rebound.

BlockBeats: When facing sudden black swan events and unexpected price drops, what preparations and risk plans do you and the other guests have in place? For example, position management, order placement strategies, stop-loss setting, etc. In addition to this, could you also share your usual trading strategies? For example, left side or right side? Moving from the left side to the right side.

Chloe: Our industry is very unique, and we may encounter some extreme market conditions such as "519" and "312". As a conservative person, I control the size of my positions in position management, not concentrating funds too much in a single asset but keeping it between 20% to 30% of the total funds. In addition, I use order placement strategies and set dynamic stop-loss and take-profit orders. When the market is highly volatile, I use limit orders to restrict losses, and I also trade based on market trends. For example, in the current bull market, I reduce my short strategy orders.

There is a common saying in trading, "Cut losses quickly and let profits run." However, in actual practice, people often fail to be rational enough when faced with risks and rewards. For instance, when looking at profits, people may dislike risks and tend to take profits; whereas when facing losses, people may prefer to take risks, persisting in holding onto losing positions, even averaging down, trying to break even. Faced with this irrational behavior, we need to set stop-loss orders to protect our funds. Take-profit and stop-loss orders are usually set based on the risk-reward ratio, and with reference to support and resistance levels. I personally prefer setting take-profit and stop-loss orders based on pressure support levels.

Here we need to mention two functions of Gate, one is a comprehensive take-profit and stop-loss function, and the other is the recently launched Smart Support and Resistance Line. The take-profit and stop-loss function includes full position, partial position, candlestick and trailing orders, MMR, and other types. Personally, I tend to use MMR stop-loss, which can ensure that I control losses within an acceptable range. The Smart Support and Resistance Line function is based on an indicator generated by the BOLL20 indicator and AI algorithm, which clearly shows the support and resistance lines in the candlestick chart. We welcome everyone to try out these new features to make trading safer.

LOYAL Rocky: I won't use a large position to engage in contracts, but I still maintain a basic sense of touch. Faced with a black swan event, whether trading BTC or altcoins, the key is to have a risk management plan and not panic due to unexpected events, leading to a mental breakdown. When you panic, your funds will slowly erode along with your mindset, which is not worthwhile.

My core principle is to allocate positions reasonably, do not let a large amount of funds in the exchange account suffer losses due to a single event, which is crucial. The uncertainty of a bull market is very high, and we cannot determine when there will be a surge. Also, the timing of market makers cooperating with project parties to drive up altcoins is uncertain. We need to maintain flexible trading strategies, formulate our own order placement strategies, and everyone's order strategy needs to be honed through time and the market.

I prefer right-side trading, entering based on signals from 15-minute candlestick analysis. Regarding black swan events, everyone should not panic and should first adjust their mindset. If your mindset is not good, try to avoid engaging in contracts. Ensure that your account has multiple orders placed.

Ice: I am also a more conservative investor, and basically, I must keep 20% of my position untouched, which is used for emergencies. After experiencing the volatility of 2021 and the bear market during that period, I deeply feel that I must reserve a portion of my position as a last resort, even if it's 10% or 20%, this position will not be touched.

Usually, the position of a single coin does not exceed 30% of the total capital. The order placement strategy mainly involves setting buy and sell orders in advance at resistance and support levels, and stop-loss points are basically set based on technical indicators. I lean more towards right-side trading, waiting for the market trend to be clear before entering. This conservative strategy also has pros and cons; the downside is that you may miss the initial price increase, but the upside is that it can reduce risks. Faced with short-term violent rallies without major favorable factors, I usually adopt a quick in-and-out strategy and never chase highs. I have more spot investments, and contract operations are basically entirely based on technical indicators, and I will control my position size.

BlockBeats: What market indicators do guests usually pay attention to in order to adjust their position sizing, such as Bitcoin ETF inflows and outflows, on-chain data (such as active addresses), funding rates, macroeconomic indicators, etc.? Are there any indicators that you think are overlooked but very important? Have these indicators helped you in your past trades?

Chloe: I'm not usually that technical and focus more on some people-related indicators in the market. For example, the fear index is a key indicator that measures market sentiment, based on the level of fear and greed among market participants for analysis. If the index shows the market in a greedy state, it means the market may be overheated, with investors being overly optimistic and impulsive; if the index shows the market in a state of fear, market sentiment will be more cautious and fearful, indicating a possible undervaluation in the market.

In addition, I also pay attention to public opinion on social media. In the era of social media, everyone can express their views and emotions, and the prevailing sentiment on social media can reflect the current market sentiment trend. I monitor discussions and viewpoints on platforms to understand the market sentiment direction. For example, if Musk suddenly tweets about a certain token, that token may experience a sharp rise. This dynamic of public opinion requires close attention from us.

LOYAL Luoyao: For indicator analysis, I believe it is still necessary to look at the overall market sentiment. Recently, I have been in contact with more projects on TON and some on Sui. If I buy spot, I will first analyze the project's investment background, leaders, team information, and the behind-the-scenes market maker team. If the project is good, some big KOLs are pushing it, the current sentiment is also very high, and community building is good, I may conservatively buy around 1000 to 5000 US dollars.

If there is a sell-off during this period, I will observe the project's status, including community activity, to decide whether to reduce or add to my position. I also care about the project's liquidity in the market, which can reflect market heat. The project's funding, on-chain data, active addresses, and transaction volume are also very important to me. For new projects, I would not easily open a contract. I hope everyone can analyze market indicators more professionally. Though we may not make big profits, we can also profit from some speculative behaviors.

BlockBeats: What specific tracks are guests currently focusing on? Where do you think the next 100x coin will emerge from? For example, the currently hot AI track, what is the ceiling price there?

Chloe: Currently, I am particularly interested in Meme and AI. In the first half of this year, the AI field was booming, and the AI track in the cryptocurrency industry was also driven up. Many AI products are still in the early stages, but some areas, such as AI agents, have become relatively mature. Although AI agents have only recently gained popularity, they already have practical applications. Applications like Twitter Posting AI, which are relevant to daily life, have also received widespread attention.

Although the AI sector is still in its early stages, I believe it is an unlimited field because AI can create many things we cannot imagine. The valuation of the AI sector by the market is also unpredictable. Since the emergence of AI, our lives have changed significantly, making this sector worth continuous attention.

Another track is Meme. Since March of this year, some Memes on Solana have started to surge against the trend, and many have made good profits through this rally. Subsequently, the Meme track has become increasingly hot, with even some forks of large-cap versions. The 2024 Meme market mainly revolves around animal themes, hot events, concepts from TikTok, and other narratives. As the Meme track develops, narratives also become more diverse. Through the promotion on short video platforms like TikTok and Twitter (now X), the influence of Memes will spread rapidly like a virus. This multidimensional narrative will inject more vitality and possibilities into the market.

LOYAL Lu Yao: Recently, I have been mainly focused on the AI and DeSCi tracks, which are currently quite popular. According to market statistics, meme coins have gained traction in this bull market, attracting over 3 million new participants in the European and American markets, which is a staggering number.

I am particularly optimistic about tracks with practical applications, such as AI agents. Web 2 users are entering the crypto space, wanting to understand what Web 3 is doing and what practical value blockchain technology can bring. Many people are skeptical about our narratives and stories, but tracks like AI can actually be implemented, bringing tangible benefits, which is undoubtedly very promising.

As for Hundredfold Coin, I think it may appear in the AI track or DeSci track. However, the hype around the DeSci track may not be as high as before, so it can be temporarily ignored. A few days ago, a friend recommended a coin called LUCE, which is a religious-related project. There may be some upcoming actions, so I recommend everyone to pay attention to it. I think it is a good target, and now might be a good entry opportunity.

Ice: Everyone may have seen that Trump recently bought about 130,000 Ondo. Ondo is the leader of the RWA track and has always been highly regarded by the market. Looking back on this year, major public chains have been actively deploying their market share. In the past month, I have a favorable view of the Meme, AI, and RWA tracks, with a primary focus on the RWA track. The RWA track has two outstanding projects. One is XMW, which saw its market value rise from $1 million to $200 million in two months, achieving a hundredfold increase in just two months. The other is TIN, whose market value also rose from $100 million to $400 million in two months, achieving a 200-fold increase. These two projects have alerted me. I originally started with meme coins and have always been active in the primary market, never leaving even in bear markets. I have been involved in public chains in the primary market and have achieved some results, but I have also experienced very painful losses. Starting from investment research, we will discover some projects with potential.

BlockBeats: Previously, everyone's expectation was basically that in this bull market cycle, Bitcoin could reach $120,000, and the end of the bull market would be in April next year. Now, after Bitcoin exceeded $100,000, how do the guests view the future market trends? How high do you think Bitcoin will go in this bull market cycle?

Chloe: As time goes on, Bitcoin's mining difficulty continues to increase, and the remaining amount of Bitcoin becomes scarcer. Currently, less than 6% of Bitcoin has not been mined yet. With the halving effect of Bitcoin and the Trump effect, more and more institutions and large companies are starting to include Bitcoin in their asset allocation, including some listed companies, financial institutions, and some governments.

Overall, the value of Bitcoin is being recognized by more people, which is a very positive trend for the entire industry. However, the financial market always has a lot of uncertainty, so predicting the peak of this Bitcoin cycle is very difficult. For individual investors, the most important thing is to manage risks well, pay more attention to policy implementation, and some macroeconomic indicators.

LOYAL Lu Yao: Currently, the price of Bitcoin is around $100,000, but I believe that the peak of this bull market cycle could be above $120,000. Especially as the global financial situation gradually improves and institutional investors begin to participate, the entry of traditional industries to buy Bitcoin further boosts market development. $120,000 may be a short-term target, and with more funds entering the market, along with the continued promotion of Bitcoin ETFs and Ethereum ETFs, the price of Bitcoin in the coming months may go even higher.

Yesterday, I attended a Bitcoin event in Hong Kong where it was anticipated that Hong Kong would introduce three judicial drafts related to Bitcoin in the future, which could cause a stir in Hong Kong and even China. In the coming months, I believe that Bitcoin may reach higher price levels, possibly hitting $150,000. However, the end of the bull market still depends on the macroeconomic trend, such as the policies post the Trump administration. If the environment remains optimistic, it wouldn't be surprising for the bull market to continue until June or August. After the judicial drafts in Hong Kong are issued, more people will pour into the crypto market, as we will have compliant laws, and some cautious but wealthy bosses will gradually enter this market.

Ice: Regarding the price of Bitcoin in a bull market, I am more optimistic about the $150,000 mark. Based on the U.S. stock market and other sources of news, as well as Bitcoin's recent movements, most people are optimistic about the market. I believe the first half of 2025 will be a very good year for the crypto sphere, but one should not be overly optimistic as risks still exist. The host mentioned that the RWA track may be very popular in this bull market, especially post Trump's administration. Everyone also mentioned the $150,000 mark, but the market is hard to predict, and project evaluation is also very challenging.

Let's mention Gate's products again. I think that when trading, whether in a bull or bear market, it is crucial to pay attention to take profit and stop loss. To provide users with a scientific basis for trading, they can set take profit and stop loss points, and we have designed intelligent support and resistance lines. As a product manager, we face market trends every day, and every decision we make may have a profound impact on the overall direction. Therefore, our starting point is to pay more attention to user needs and remain sensitive to market dynamics so that we can accurately predict potential risks, which is also a core element in formulating our trading product strategy.

Space Link: https://x.com/i/spaces/1MYxNMkAMoRJw

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