Here's what I've noticed — most beginners don't understand why the price sometimes skyrockets or drops within just a few minutes without any obvious reason. In reality, these are often squeezes, and you need to be able to read them.

Let's start with a short squeeze. Imagine — a bunch of traders have opened short positions, all betting on a decline. But suddenly, the price starts to rise. Short sellers panic, they need to close their positions quickly, which means they start buying. The more they buy, the higher the price shoots up. This creates a chain reaction, and the price just soars 🚀 Have you seen candles like that? That’s it.

Now, the opposite scenario — a long squeeze. Too many people have opened long positions, all expecting a rise. And then — bam, the price suddenly drops. Traders who opened long positions start to panic and close their positions. This adds even more selling pressure, and the long squeeze fully unfolds — the price just crashes.

How to recognize this? Look at the open interest — if it’s high and all bets are on one side ( either too many longs or too many shorts ), that’s a red flag. The second sign is a sudden spike in volume in the opposite direction. The third is the price sharply breaking through key support or resistance levels.

My advice — don’t chase after those green and red candles. Long squeezes and short squeezes punish late entries. It’s better to watch how the market accumulates pressure, then enter after the wave has passed and everything has calmed down. That increases your chances.