What is Buy Wall?
Let's find out Buy Wall meaning, definition in crypto, what is Buy Wall, and all other detailed facts.
A buy wall is an outcome of purchasing one big order or a mixture of several large orders that are classified at the same price in the order book of a specific market. The order book contains a list of buy and sells orders put in by traders.
Speaking of cryptocurrency exchanges, trading is executed by using an order book in which buyers place their buying bids, and sellers place their asks. To specify, buying walls helps to avoid market price downfall by developing a huge amount of orders at the same price. This essentially needs large amounts of money to be done.
By placing a buy wall users are able to manipulate the price. A whale who keeps a big amount of a specific cryptocurrency in his wallet can get worried about the reputation of their asset. As a result, they might purchase more coins and strengthen the price. This way, the asset will seem to be more vigorous than it really is.
A buy wall occurs when a massive limit order is placed to purchase at the same time the price of a cryptocurrency hits a specific level. Traders use this to create confidence in the market. Also, to prevent a cryptocurrency from going below that value since demand will almost certainly surpass the supply when the order is fulfilled.
However, there isn’t any logical reason for sellers to offload their assets at a price that is lower than what the already existing unfulfilled buy wall offers to purchase. Besides, buy walls can be created for different reasons.