This is how it is described in The Elliott Wave Principle written by Robert Prechter, the godfather of market analysis:

"Second waves often retrace so much of wave one that most of the profits gained up to that time are eroded away by the time it ends. . . At this point, investors are thoroughly convinced that the bear market is back to stay."

So your friends will soon falsely pat themselves on the shoulder and missing the next opportunity while listening to the same old bullshit on the news: "not backed by anything... not government regulated...fraudulent...scam...dangerous...etc."