How is Bernoulli's Equation applied to capillaries?

I have always explained it this way, but just realized I've never actually verified this and the answer is hard to find online.

When blood moves from arteries to arterioles and then to capillaries, it's slowing down due to an overall increase in cross sectional area. I have people ask me, "Why doesn't pressure then go up because according to Bernoulli's equation it's slowing down so it should?"

I have always said we can't apply that equation to two points far apart in the blood because there is energy lost between two points and that equation assumes there is not.

Is that explanation correct?