A normal downtrend is characterized by the price falling for a significantly longer time than it remains in a sideways consolidation. If, during a bearish market, you notice that the time spent in consolidation after a price drop is much greater than the time spent dropping, it may indicate that the market is beginning to form a bottom. The longer the consolidation lasts, the longer the bottoming process may take, and the less likely it is for the price to drop again. If you are holding a short position at this time, it is advisable to take profits and close the position.
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Because in a downtrend, if the price cannot break below the previous low for an extended period and continues to fall, it will undermine the confidence of short investors, causing some of them to close their short positions, making it even harder for the downtrend to continue.
