Buy Wall

Buy wall is the entry of large buy orders into the order books in the markets at the same price value. The buy wall can be created by those who place high-value orders, namely wealthy individuals, trading groups, maybe crypto whales, or institutions.

What is Buy Wall in Crypto?

When wealthy individuals on the cryptocurrency exchange want to control prices in the market, they create buy walls, in other words, selling walls by doing this in the most appropriate way for their own benefit.

After these individuals establish high buy walls, other market traders keep their sales advertisements behind these high walls. For example, if a Bitcoin sell wall of $5,000 is created, other users in the marketplace sales over $5001.

The reason for this transaction in the market is that they can sell their own goods together with the wall, with the possibility of a small probability of the loss of the buying wall. But in reality, most of the trading walls stay in sight for a while and do not fully fulfill orders.

In addition, it is also common to see that the buy-sell walls move up or down depending on the movements in the market.

Purposes & Functions of Buy Wall in Crypto Markets

• Investing: Obtaining a large amount of a particular cryptocurrency where the buyer is optimistic
• Manipulating: Price manipulation, a rich person holding a large amount of a particular cryptocurrency can manipulate the price and as a result, they use their resources to simultaneously buy more coins and support the price, making the asset look healthier than it actually is.
• Supporting: Some investors who are loyal to investment objects can come together to create a buy wall for the relevant cryptocurrency and aim to not allow it to go below a certain level. This level is also called the support point.