Using 3L and 5L could hurt profits if the coin's price drops

Honestly, I doubt I'll buy BTC 3L and 5L on the spot market. I’d rather stick with 3 to 5x leverage in perpetuals for short-term trades or quarterly futures for a longer hold. Not planning to try it myself, but I'm curious what others on this forum think about it since some of you have experience with these products. I've noticed the warnings about BTC 3L and 5L saying they're mainly for short-term trading. If you make some gains, it's smart to cash out before it drags on too long, since those profits can vanish even if BTC itself isn't dropping anymore, so you don’t want to risk losing what you’ve gained. But here's my question: if you're taking losses with BTC 3L and 5L, does the loss start to shrink if Bitcoin's price stays stable over a longer time? If the price can settle down as time passes, shouldn’t the losses decrease too? Is that how it works?