“🔍 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"