What are buy and sell walls in crypto?

💰 A “buy wall” is a massive buy order, or multiple buy orders, around a particular price level.

💵 A “sell wall” is a significant accumulation of sell orders at a given price level.

A large spike sloping upward on the market depth chart’s either side is called a “wall.” These walls appear as deeper vertical lines resembling the side angle of a staircase.

A buy wall is formed when the number of buy orders massively exceeds the sell orders at a given price, thus illustrating greater demand for the cryptocurrency versus its supply. As a result, traders see the levels where buy walls appear as areas of support for a potential bounce 📈

Similarly, a sell wall is created when the number of sell orders surpasses the buy orders, showing weaker demand versus supply at a certain price level.

❗️ Buy and sell walls should not be solely relied on to predict price direction. Orders can be pulled or introduced anytime, with market dynamics always in flux.