Friday, 26 April 2024
Trending

[the_ad_group id="2845"]

Investing

What are buy and sell walls in crypto, and how can one identify them? By Cointelegraph

Aave DAO votes for ‘rescue plan’ to save lost tokens

[the_ad id="21475"]

[ad_1]


In cryptocurrency trading, a “buy wall” is a massive buy order, or multiple buy orders, around a particular price level. Conversely, a “sell wall” is a significant accumulation of sell orders at a given price level.

Before understanding how buy and sell walls work, it is important to know what an order book and its market depth are.

BTC/USDT order book example. Source: Binance
BTC/USDT market depth chart. Source: Binance
Market depth chart illustrating buy and sell walls. Source: Phemex