That's what you called, "bad timing", it is not good idea to continue to go bearish while it is strong indication that bitcoi is bullish. Except if you go short entry and exit suddenly after small corrections.
But if you correctly read some good indicators with of course stop loss then you dont stucked with your bad entry.
It is true, we must be able to read as well as analyze the indicators that cause something to happen correctly, but sometimes the results of our readings miss, therefore, as you said stop loss also needs to be used to anticipate this. Because stop loss is a safety for traders. This feature allows us to navigate the stock market even after a very violent storm. Stop loss means that we will always have the capital to return to profit from the stock market and also keep us from running out of capital.
From a psychological perspective, stop losses help clear your mind when trading. Trader psychology becomes less burdened because after all, he has set the maximum loss that will be borne for each trade made. Stop loss can provide a sense of calm because we have set the loss level at the point where we can accept it without regret. The point where we can sincerely accept the loss of money and quickly move on to look for new opportunities for profit.
In essence, stop loss is a way for us to get through unexpected situations smoothly.