Its a market psychology theory that markets expand in 3 (5) waves as correct in ABC waves.
Extremely simplified, initial wave of early adopters and investors, a first corrective wave those taking profits. Then if that something survives and others expect profits, the first wave, with those taking profits being the corrective second wave. If it still appears as something that can be used to make profits, a third wave, the longest appears, main stream investors starting to pure in liquidity, taking debt to invest, then when those take profits either a longer A corrective wave appears, with liquidations and such or a rare 4 corrective wave with stupid money buying and more stupid money pushing the price above the top of mainstream wave 3, the wave 5, purely fueled by stupid money over leveraging, the consequent profit taking and liquidation results in A down, dead cat bounce up not going over top and a long corrective C wave to equilibrium price.
The 2022-25 expansion was largely fueld by over leveraging during a credit crunch, with most liquidity being high interest debt, extremely stupid money.
My current suspicion is, its a historical V of V that started in the 70s after the oil crash, fueld by the expansion of public debt and the Boomers going after us the flood. One of the reasons all I have been buying for 3 years being yield bearing debt.
