Seeking Opportunities in Extreme Panic: How Beginners Can Safely Start Trading Gate Contracts

Bitcoin is currently quoted at $85,382, down 0.68% over the past 24 hours. Ethereum is trading at $2,825, and the total cryptocurrency market capitalization has fallen below the $3 trillion mark.

Today’s fear and greed index dropped to 16, indicating an “extreme fear” market condition. Glassnode’s analysis points out that Bitcoin is trapped in a fragile oscillation range, with resistance around $93,000 and support at $81,000.

01 Current Market: Critical Turning Point in Extreme Fear

The current crypto market is undergoing a confidence test. As of December 19, Bitcoin’s price repeatedly tests the key support around $85,000.

This price zone is viewed by analysts as a “critical turning point.” According to Brave New Coin, the $84,000 - $85,000 range is a crucial support area for Bitcoin. If it is effectively broken, it could trigger a deeper correction; if held, it may open the path for a rebound toward the $90,000 - $92,000 resistance zone.

Ethereum also faces technical challenges. Its price has formed an important support near $2,900, coinciding with the neckline of a forming head and shoulders pattern, becoming a focal point for bulls and bears.

In terms of market structure, Glassnode notes three pressures: heavy selling pressure above, continuous outflow of loss-making positions, and weak demand. However, a positive signal is that institutional demand seems to be quietly improving. CryptoQuant’s data shows that Ethereum’s fund market premium, after several weeks of negative values, has recently turned slightly positive.

02 Introduction to Gate Contracts: The First Step from Zero

For beginners wanting to try contract trading on the Gate platform, understanding the basic process and key points is essential before starting.

Trading contracts on Gate is part of the platform’s cryptocurrency trading, allowing users to leverage their positions and predict price movements without directly owning the cryptocurrencies.

First, complete account setup: visit the Gate website or mobile app to register an account and complete identity verification. Then, activate the contract trading feature in the “Futures” section as instructed, and set a strong password along with two-factor authentication to ensure account security.

Next, prepare funds: log into your Gate account, go to the “Wallet” section, select the cryptocurrency to deposit, and click “Deposit.” Transfer from your personal wallet or other exchanges using the provided address. Once funds arrive, your contract account balance will update.

Gate offers systematic learning resources for beginners. The platform’s “Gate Contract Trading Guide - Must Read for Beginners” course is designed specifically for new contract traders, covering product knowledge, opening and closing positions, market analysis, position management, and risk control.

03 Strategy and Response: How to Trade in the Current Market

In the face of the current market environment, novice traders need cautious strategies. The basic process for trading contracts on Gate includes several key steps.

Choose trading pairs and order types: access Gate’s contract trading interface, select the contract type and currency pair. Gate offers market orders, limit orders, stop-loss orders, and take-profit orders.

Set trading parameters: input the trading amount and desired price (if applicable), carefully review all information and conditions before confirming the trade. After execution, manage and track orders through the trading interface.

Technical analysis provides a specific operational framework for the current market. Analysts suggest monitoring the key zone of $84,000 - $85,000 for Bitcoin.

If the price can hold this support, consider taking a small long position; if it breaks below, be alert to further downside risk. For Ethereum, the $2,900 support is critical; if it is effectively broken, the next demand zone is near $2,630.

Regarding Ethereum’s future trend, Blockchain News forecasts a short-term (one week) target of $3,050 (approximately +7.6%), and a medium-term (one month) range of $3,150 - $3,250.

These forecasts provide a reference framework for developing trading plans.

04 Risk Management: Protecting Principal in Volatile Markets

The core of contract trading is not chasing huge profits but how to survive long-term in the market. For beginners, risk control is the top priority.

Set clear stop-loss levels: before trading, determine the maximum loss you can tolerate, such as 5% or 10% of your account funds. During market volatility, this helps manage risk effectively.

Diversify your investment portfolio: avoid concentrating all funds in a single cryptocurrency or trade. Distributing funds across multiple assets can reduce overall risk.

The current market environment demands cautious capital management. Glassnode warns that the market is in a fragile structure, constrained by multiple factors.

In such an environment, small positions, strict stop-losses, and patience for high-confidence opportunities are wise choices. Especially for new contract traders, starting with small amounts and gradually increasing positions as experience and confidence grow is recommended.

Trading psychology is equally important. Gate’s courses emphasize emotional management during trading, a skill many new traders overlook but is crucial. In an extremely panic-driven market, staying calm and avoiding emotional trading is vital.

Understanding profit and loss calculation mechanisms, and fully grasping how contract trading profits and risks are computed before participating, helps make smarter decisions.

Future Outlook

As Bitcoin repeatedly oscillates around the critical $85,000 level and Ethereum holds the $2,900 support, the total cryptocurrency market cap has slipped from its $3 trillion high.

Market sentiment indicators remain at “extreme fear” with a score of 16. The large-scale expiration of options at year-end is also influencing the trend. Glassnode’s analysis indicates that once the December 26 expiration passes, the market structure will reset.

Traders who cautiously build positions near support levels and set strict stop-losses are quietly positioning themselves for a possible market reversal.