Walls create nervousness! The Wall Phenomenon

[Abandon]

Walls indicate an artificial support or resistance that can vanish at any moment. If a wall doesn't vanish, it will likely be eaten.

The reasons why:

- Traders put stop loss or buy orders directly behind walls, so once a wall vanishes, it sets off a cascade of sell or buy orders.
- Traders cannot trust walls, they are fickle.
- Once one whale of a trader sells or buys into a wall, another whale is likely soon to follow, and that creates a panic buy or sell event.
- They look artificial, as if the person behind the wall is trying to manipulate the market, and in a sense they are, just maybe not the way they want to.
- They prevent price slippage, even for large orders, so a whale could sell or buy into a wall without slippage and without worry.

Even if there is little reason for the price to go up or down, when faced with a wall, traders will tend to want to try and eat at it.


Sell walls seem better at pushing the price down than buy walls pushing the price up. I think people assume that if someone is placing a buy wall, that they already have a large investment in bitcoin, and that the cash that they're using is for market manipulation. But in reality, it can go both ways, which fewer realize. Then again, pushing the price down has a tendency to cause a rebound. Sell walls also tend to disappear more often than buy walls, which is usually followed by a sell off, either because people assume that the person behind the wall is going to sell, or because they do sell.

[Jozzaboy]

Walls indicate an artificial support or resistance that can vanish at any moment. If a wall doesn't vanish, it will likely be eaten.

The reasons why:

- Traders put stop loss or buy orders directly behind walls, so once a wall vanishes, it sets off a cascade of sell or buy orders.
- Traders cannot trust walls, they are fickle.
- Once one whale of a trader sells or buys into a wall, another whale is likely soon to follow, and that creates a panic buy or sell event.
- They look artificial, as if the person behind the wall is trying to manipulate the market, and in a sense they are, just maybe not the way they want to.
- They prevent price slippage, even for large orders, so a whale could sell or buy into a wall without slippage and without worry.

Even if there is little reason for the price to go up or down, when faced with a wall, traders will tend to want to try and eat at it.

Someone has been looking through my post history 

[Abandon]

Someone has been looking through my post history 

I mostly came to realization myself, but I'm glad that others too have come to similar conclusions!

[BitChick]

I am all for more walls with large bids to buy.  I can only send the prices higher in the long run I would think???

[Abandon]

I am all for more walls with large bids to buy.  I can only send the prices higher in the long run I would think???

But what if the price went down, wouldn't they want to cut their losses at some point?

What is the wall is a bluff?

This is what most traders think.

[BitChick]

I am all for more walls with large bids to buy.  I can only send the prices higher in the long run I would think???

But what if the price went down, wouldn't they want to cut their losses at some point?

What is the wall is a bluff?

This is what most traders think.

Walls are probably bluffs put there to manipulate the market, but I would think that it would cause people to realize that as long as the wall is up the price is not going to go down below that price and then buy. For instance, this morning there was a buy order of over 4000 BTC at 108.51.  For a while prices were pretty much guaranteed not to go below that for while.   Of course, once the wall was removed it did go down and now we are in limbo for a while.  Perhaps the person will decide to put it back up?  I hope so.    There is alot of power to manipulate the market for those with enough BTC to do so for sure.

[Miz4r]

I am all for more walls with large bids to buy.  I can only send the prices higher in the long run I would think???

But what if the price went down, wouldn't they want to cut their losses at some point?

What is the wall is a bluff?

This is what most traders think.

Walls are probably bluffs put there to manipulate the market, but I would think that it would cause people to realize that as long as the wall is up the price is not going to go down below that price and then buy. For instance, this morning there was a buy order of over 4000 BTC at 108.51.  For a while prices were pretty much guaranteed not to go below that for while.   Of course, once the wall was removed it did go down and now we are in limbo for a while.  Perhaps the person will decide to put it back up?  I hope so.    There is alot of power to manipulate the market for those with enough BTC to do so for sure.

That wall was eaten alive, it was not removed. He simply wanted to buy that many bitcoins and saw no better way than to put up a gigantic wall. Well, he succeeded alright so maybe not a bad decision all in all.

[Abandon]

Sell walls seem better at pushing the price down than buy walls pushing the price up. I think people assume that if someone is placing a buy wall, that they already have a large investment in bitcoin, and that the cash that they're using is for market manipulation. But in reality, it can go both ways, which fewer realize. Then again, pushing the price down has a tendency to cause a rebound. Sell walls also tend to disappear more often than buy walls, which is usually followed by a sell off, either because people assume that the person behind the wall is going to sell, or because they do sell.

[Jakewell]

A dumper can put a buy wall of 500 BTC to make feel secure other buyers, once they put more buy orders around that price, he dumps 2000 BTC which at the end he dumped only 1500.
this is well know for dumpers who dont want to affect the price too much

[barbs]

Yeah of course it does,    but it is also great that we can all see this information because you can better predict if there are real legs here (or just one big leg) or what.

I looked at this rally with annoyance as today was a mini repeat of yesterday.. similar setup and back down we go.  I think the real legs are at 101-95 but with bitcoin? you never know.

Get ready to see plenty more of this type of stuff in the BTC Wild West

[BitChick]

A dumper can put a buy wall of 500 BTC to make feel secure other buyers, once they put more buy orders around that price, he dumps 2000 BTC which at the end he dumped only 1500.
this is well know for dumpers who dont want to affect the price too much

 I prefer that to someone just dumping them without trying to keep the price up a little.  Of course, it is in the "dumpers" best interest to do this so he sell at a higher value that way.