A Buy Wall refers to a large amount of buy orders placed for a particular cryptocurrency at a specific price point on an exchange. This creates a barrier or “wall” of buy orders, indicating strong support at that price level. Buy walls are often seen as a bullish signal by market participants, suggesting that investors are confident in the cryptocurrency and willing to buy it at that price.
The presence of a buy wall can help stabilize the price of the cryptocurrency, as sellers may struggle to push the price below the established support level. Traders may use buy walls as a reference point for determining potential entry or exit points for their trades.
However, buy walls can also be manipulated by traders or groups looking to influence the price of a cryptocurrency. This practice, known as “wall spoofing,” involves placing large buy orders with no intention of actually completing the transactions, in order to create a false sense of market demand.
