No, a short squeeze will be what causes the market to go parabolic. You've got your terminology wrong. Short squeezes are when traders are "short" the asset (they've sold more than they own) and the price goes up, forcing them to buy back what they're "short" at higher prices. This can cause serious upwards pressure on the asset and if the market recognizes it, the "sellers" will dry up and the "shorts" will be forced to buy back what they owe at higher and higher prices.

You're on the right track, but, like I said, you have the terminology wrong. What the exchanges have done recently is hammer the long-leveraged traders by dumping the price. There are exchanges that allow people to buy anywhere from 2 to 100 times the amount of bitcoin they've actually paid for. In other words, you could send $1000 to the account and buy $100,000 worth of bitcoin. Using easy numbers, let's say bitcoin was at $33,333 and you sent in $1000 and bought it at 100x leverage. That means you would "control" 3 full Bitcoin. If the price goes straight to $36,333, for example, you would make $3000 X 3 BTC = $9000 in profits. If, however, the price goes down to $33,000, you would lose $333 X 3 Bitcoin = $999 and the exchange would immediately sell the 3 BTC you were controlling and take your $1000. This would obviously cause selling pressure on the market and possibly trigger further "liquidations" of long-leveraged positions causing a snowball effect and quite possibly a severe drop/"correction".

In my opinion, that's what's happened over the last month. The long leveraged positions got too out of whack and the exchanges hammered the price causing most of those leveraged positions to be liquidated. This, in turn, created even more selling pressure on the market and bitcoin tumbled. At a certain point, the traders will turn bearish and there will then probably be more "short" positions open than long. That is when I think you'll see the next jump in Bitcoin. That could then cause an actual "short squeeze" which would cause the price to shoot up as fast as (or even faster) than it recently dropped.

You have to remember, the exchanges are the "house" in a casino analogy. And what does the house always do? Win. The only way to beat the house long-term in the markets is to be a HODLer. If you trade, eventually you either get rekt, or you miss out on the giant moves. I'm sure there are success stories out there but they are few and far between.

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