I would suspect that this massive Bid Wall registering on Bitstamp, is actually due to the massive Liar Walls on Bitfinex. In fact, I am sure that this is the case.
Bitstamp is not showing orders from Bitfinex, you can just do market trades at Stamp from Bitfinex.
Personally I suspect part of the increase in the bidwalls on Stamp are from people who missed the action on monday sticking their cash on the book instead of leaving it in their accounts, in the event that their is another sharp drop. That's why they are not chasing it.
In particualr I suspect that there has been a large increase in money sitting at lower levels in case due to the fiasco at bitfinex and btc-e.
I have not analysed the change in the order book so I do not know if this is true or not.
Either way it it is certainly not bearish, but perhaps it is not quite as bullish as it first appears. More a case of bulls without bots showing their hands through fear of missing out in the next drop if there is one.
Oh yes, sorry, I forgot to say, Bitcoin is definitely dead ...
