Meaning of Buy Wall on Crypto Market – Bittime

In the world of crypto exchange, the term buy wall is a phenomenon that is quite interesting to study. For those who still don't understand, read here from the definition to how to read the buy wall.

What is a Buy Wall?

A buy wall is a large buy order placed on an exchange's order book, with the aim of supporting the price of an asset. Buy walls are usually placed by large traders, or "whale", who want to stabilize prices or push them up.

How Buy Walls Work?

Buy walls work by matching sell orders with lower prices. For example, if there is a buy wall placed to buyBitcoin for $50,000, and the current price of Bitcoin is $49,000, then all sell orders that are under $50,000 will be matched against the buy wall.

Types of Buy Walls

There are two main types of buy walls:

Accumulation buy wall: Accumulation buy walls are used by traders to accumulate large amounts of assets. This buy wall is usually placed for the long term, and traders usually will not sell their assets until the price reaches a certain target.
Price manipulation buy walls: Price manipulation buy walls are used to push the price of an asset up. This buy wall is usually placed by whales who want to trick other traders into buying the asset.

Significance of Buy Wall

Buy walls can have a significant impact on the price of an asset. A large buy wall can prevent the price of an asset from falling, or even push it up. Buy walls can also be used to indicate bullish sentiment in the market.

How to Read a Buy Wall

There are several ways to read the buy wall:

Buy wall size: The larger the buy wall, the more likely it is to influence the price.
Buy wall location: A buy wall placed close to the current market price is more likely to be triggered than a buy wall placed well below the market price.
Trading activity: If there is high trading activity around the buy wall, it is more likely to be triggered.

Conclusion

Buy walls are a complex phenomenon that can have a significant impact on the crypto market. By understanding how buy walls work, traders can make more informed decisions about when and how to invest in crypto.

What is Bitcoin Pizza and What is its History?

DISCLAIMER: This article is informational in nature and is not an offer or invitation to sell or buy any crypto assets. Trading crypto assets is a high-risk activity. Crypto asset prices are volatile, where prices can change significantly from time to time and Bittime is not responsible for changes in fluctuations in crypto asset exchange rates.

Related to