Why is there a rally?
Actually, there’s no need to overthink it. Don’t think about some sacred mission to change the world; at its core, this is a treacherous game of capital. And the essence of the capital game is harvesting.
How is harvesting done? It’s quite simple: by raising prices to stir investor emotions and attract more people to buy in. If the price is raised high enough, after a while, it will start to drop back down. However, if the price consolidates at a relatively low level for long enough, especially when everyone is speculating it will continue to drop, the market may actually rebound. Why? Because this is a game of market sentiment.
Conversely, when everyone generally believes that the market will continue to rise, it is very likely that the market will experience a decline again. Why? For no other reason than the big eating the small and the strong overpowering the weak. Large capital will control market sentiment, manipulate prices, attract retail investors, and then harvest their funds at the right moment.
