Buy Wall
What is Buy Wall?
A buy wall manifests when a single large buy order or multiple significant buy orders cluster together in the order book of a market at a set price. Wealthy individuals, trading groups, or financial institutions often orchestrate the formation of these buy walls.
Understanding Buy Wall
In the realm of cryptocurrency trading, transactions are executed via an order book, where buyers state their purchasing prices (bids), and sellers indicate their selling prices (asks). Essentially, buy walls act as a stabilizing force for the market prices, as they present numerous orders at one price level that require substantial capital to close and push through.
Buy or sell walls regularly emerge when major holders, often referred to as whales, aim to influence market pricing to their own benefit. Thus, these whale traders frequently create buy and sell walls as a strategy to sway market dynamics.
Whenever large buy or sell orders manifest in the order book, it's common for other traders to place their own orders immediately following these walls.
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