Why is it not advisable to short in a bull market?
In a bull market, the market generally performs strongly, with many cryptocurrencies continuously hitting new historical highs. In such a market, the potential for upward movement is almost limitless, while the potential for pullbacks is relatively limited.
Taking Bitcoin as an example, even if it drops from $100,000 to $20,000, the decline is only 80%, but the upward potential in this round of Bitcoin's bull market is unpredictable; it could rise to $150,000, $300,000, or even higher.
If one starts shorting from $50,000, the recent rise of Bitcoin may have already caused short sellers to get liquidated multiple times. Every pullback in a bull market is an opportunity to go long, and following the trend is the wisest choice.
Rather than acting against the trend, it is better to steadily follow the market's direction to gain larger profits. Thus, in a bull market, shorting not only carries extremely high risks but may also lead to missing out on significant profit opportunities.
