Before a big surge, a deep shakeout is essential; this is true for all assets. The reason is simple: a deep shakeout clears the chips, making it easier for the big players to push the price up smoothly.

Sometimes, it’s a follow-the-market shakeout; other times, the big players create a reason to shake out, and there are various methods. If it can’t be shaken out cleanly, then the big players will abandon this stock.
But for some very good targets, the big players are reluctant to give up the stock because the quality of the asset is too high, and they can’t find a better one. For us retail investors, we should cherish these.