There is an old saying in traditional markets which is actually more like a trading rule. It goes: “when the trend is negative, one can only be neutral or short,” meaning, bet on the price decrease. The problem is that a relief bounce tricks traders into believing that the negative prevailing sentiment has shifted into a buyers’ market.
For example, after analyzing Ether‘s (ETH) price chart, one might conclude that after a 41% crash, a bull run should be ignited sooner rather than later. Unfortunately, this is a bit of a fallacy because markets can exist in periods of non-definition (trendwise).