Jack Yi: Bullish Sentiment Remains Intact Despite Spot Position Risks

Liquid Capital founder Yi Lihua (Jack Yi) recently shared a detailed review of his market operations following a period of significant volatility that saw Bitcoin (BTC) struggle against macroeconomic headwinds. Yi noted that while he successfully executed profit-taking on long positions during recent price swings, his spot positions remain trapped due to the sudden correlation with a declining US stock market. Despite these short-term setbacks, the veteran investor maintains a bullish long-term outlook, suggesting that the recent price action is a necessary correction within a broader upward cycle.

Market Timing and Strategic Entries

The founder's recent strategy was heavily influenced by the performance of the Democratic Party in the US, leading to an initial judgment that equities might face a sharp decline. Initially, Yi refrained from "buying the dip" until market sentiment showed signs of a sustainable rebound. Following a trend-based approach, his team entered the market when BTC was trading near $80,000.

• A key confirmation signal was observed when BTC stabilized above $83,300, which at the time appeared to signal the end of the pullback.
• The market subsequently faced a delayed sharp decline in US tech stocks, which dragged Bitcoin down from its support levels.
• Yi emphasized that while spot holders are currently under pressure, the overall trend structure remains positive.

Risk Management and Technical Support Levels

Yi highlighted that the primary difficulty for traders lies in predicting the speed of market fluctuations, which often move in non-linear patterns. He pointed to specific technical zones that have dictated recent price action, specifically the $81,000 support level (near the 400-day moving average) and the $86,000 resistance zone, which has repeatedly seen heavy profit-taking. The founder noted that his team adjusted their strategy by securing gains on leverage while holding spot assets to weather the volatility.

Rapid rises and falls are difficult to predict accurately, and the key lies in good position and risk management. Adhering to pre-set principles is vital to avoid being shaken out by short-term moves.

Future Outlook and Macro Factors

Looking ahead, the Liquid Capital founder remains focused on AI-related technologies and high-quality crypto assets as the primary drivers of the next market leg. He believes that the current pressure from the Federal Reserve's potential December rate hikes and the recent US midterm election results has created a temporary panic that serves as a "test of human nature" for investors. Yi expects that once the market digests these macro shocks, the path toward new highs will resume, provided that global monetary expansion continues.

For the future, the strategy remains centered on identifying attractive dip-buying opportunities without resorting to shorting in what is still perceived as a bullish structural environment. Risk management remains the priority as the market navigates a period of high correlation between digital assets and traditional growth stocks.