The latter part of a bear market is a transitional phase. It may not continue to make new lows, but rather spend more time bottoming out, appearing one way while acting another. Short sellers should be careful. The situation has changed significantly compared to mid-May to late June. The adjustment from mid-May to late June was caused by a combination of factors: market concerns about policy uncertainty due to the change in Fed leadership, and the interest rate hike by Japan. Entering July, Walsh has shown a style of being seemingly hawkish but actually dovish. The June non-farm payrolls not only crushed expectations of a Fed rate hike from October to December, but also forcefully kicked open the door for a rate cut in the second half of the year. This dramatic reversal is laying the foundation for the upcoming bear-to-bull transition period.

Many people always think that in a bear market you should only short, and they don't set stop-losses when shorting, so they panic once they get trapped. For example, on July 2, ETH suddenly rose from 1596 and broke through 1700 to 1722. I set the take-profit point for my long position at 1672, and the stop-loss for the short position at 1689. Some people didn't set it in advance. Think about how affordable this stop-loss is; it allows you to control the initiative of shorting at a high level. But if you get trapped from the start, and then after a two-day consecutive rise, you'll be forced to lock your position and be in danger, and then you'll have no part in the subsequent game. While others are making profits, you can only wait to break even. The gap is huge. Is shorting in a bear market death-free? If it doesn't continue to go down, won't you be doomed? After all, relative to the bull market, the current levels are the bottom.

Of course, on the road to a rebound, stop-losses are also necessary. For example, if the day breaks below the previous day's low, then retreat to the low of two days ago before re-entering.