What is Buy Wall?
A buy wall is the consequence of a single large buy order or the combination of numerous large buy orders placed in the order book of a certain market at the same price. A wealthy individual, group of traders, or institution can construct a buy wall.
Understanding Buy Wall
Trading on cryptocurrency exchanges takes place through an order book, in which buyers indicate their buying prices (bids) and sellers indicate their selling prices (asks). Essentially, buy walls keep market prices from falling because they generate a huge number of orders at the same price, requiring big sums of money to be completed and passed over.
Buy or sell walls typically develop when significant holders (whales) of any cryptocurrency seek to manipulate the pricing to their advantage. As a result, whale traders frequently construct buy and sell barriers in an attempt to manipulate markets.
When large buy or sell orders appear in the order book, other traders typically put their orders immediately after the walls.
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