According to @StockMarketNerd, over 90% of bearish theses for quality companies on X are anchored to recent price weakness, source: @StockMarketNerd on X. This aligns with documented recency bias and 3–12 month momentum in equities, indicating that short-term underperformance can reflect trend effects in addition to fundamentals, source: Jegadeesh and Titman 1993, Journal of Finance; Barberis, Shleifer, and Vishny 1998, Journal of Financial Economics. Research also shows that earnings news has predictive power for subsequent returns, suggesting traders validate shorts with event-based signals (for example, negative surprises) rather than drawdowns alone, source: Bernard and Thomas 1989, Journal of Accounting Research. Similar momentum patterns are found in crypto, including BTC and ETH, so price-only bear narratives after drawdowns should be tested against multi-month momentum filters before acting, source: Liu and Tsyvinski 2018, Journal of Finance.