Buy Walls
Large accumulations of buy orders at a specific price level, forming a barrier against downward price movement.
What is Buy Walls?
Buy walls appear as steep, cliff-like patterns in depth charts, indicating substantial buy orders at one price, like 50 ETH at $1,990. They suggest strong support, as heavy buying absorbs selling pressure, preventing drops. On Kraken’s BTC/USD, a buy wall at $59,500 signals bullish lean if thin sells follow.
Traders use buy walls to find entry points near support. However, walls can be manipulative if spoofed by large players canceling orders. In balanced markets, buy walls enhance liquidity, reducing slippage for sells.
Related Terms
Constant Product Market Maker (CPMM)
An automated pricing model in DeFi that maintains a constant product of asset reserves in a liquidity pool to determine prices.
APY （DeFi）
Annual Percentage Yield (APY) is the annualized rate of return on an investment or loan, accounting for compound interest earned or paid over a year.
BIS Stablecoin Principles
Bank for International Settlements' guidelines stressing regulation for stablecoins to mitigate financial stability risks and ensure they function as sound money.
Aave
A decentralized non-c custodial liquidity protocol for lending and borrowing digital assets on blockchains like Ethereum.
Consumer Price Index (CPI)
A monthly measure of average price changes in a fixed basket of goods and services purchased by urban consumers, produced by the Bureau of Labor Statistics.
Bid Side
The section of an order book listing all open buy orders, sorted from highest to lowest price.