“🔍 What is a Liquidity Squeeze in crypto?
When liquidity decreases, even small trades can cause large price swings.
🚫 Few buyers = prices drop sharply.
🚫 Few sellers = prices explode.
Main factors:
1️⃣ Small volumes: Lack of activity in the market.
2️⃣ High Leverage: Forced closeouts amplify movements.
3️⃣ Fear or FOMO: Sudden inflows/outflows of capital.
👉 Pay attention to sudden price movements and weak orders in the order book - these are the signs of a liquidity squeeze! 💡 #CryptoEdu"