Capital Preservation is the number 1 priority of a trader in practicing good risk management. Traders don't hold positions and add the way investors do. Trading is a high intensity activity with high risk. So when I said a bearish market in the context of the recent draw downs is the reason a trader would use a stop loss is to either have lock in gains if they rode to the top, or if they were buying a dip hoping to make a trade, to prevent going down with the ship.

BTC has gone from nearly $5000 to $4000 -- 20% draw down.

In the nearer term you saw it go from $4600 to $4000 - If a trader is locked into a position how do they continue to trade. If a trader is at profit, they must realize those gains to have progression in their portfolio.