A buy wall forms when several large buy orders are combined into one large order and entered into the order book of a particular market at the same price. A wealthy individual, a group of traders, or organizations can construct buy walls.
An order book is used in cryptocurrency exchanges for trading, where buyers list their asking prices (bids) and sellers list their asking prices (asks). In essence, buy walls stop market prices from falling since they generate huge orders at the same price that must all be performed and transferred with a lot of cash.
When significant holders (whales) of a cryptocurrency seek to manipulate the price in their favor, buy or sell walls frequently appear. Whale traders often construct buy and sell walls to influence the markets.
Although less frequent, buy walls can be quickly “gobbled up,” having all their orders filled in a matter of seconds when a bearish market decline is particularly strong.
