Bitcoin Forum
April 19, 2024, 06:12:25 AM *
News: Latest Bitcoin Core release: 26.0 [Torrent]
 
   Home   Help Search Login Register More  
Bitcoin Forum > Economy > Economics > Speculation > On the meaning of "walls" and liquidity
Poll
Question: You notice a huge ask wall has appeared a few cents above the last price (and can assume it's "real"). What does this mean?
We're going DOWN! SELL SELL SELL! - 5 (12.8%)
We're going UP! BUY BUY BUY - 11 (28.2%)
Om nom: tasty cheap coins! - 12 (30.8%)
Who knows? - 8 (20.5%)
Who cares? - 3 (7.7%)
Total Voters: 39

Pages: [1]
« previous topic next topic »
  Print  
Author Topic: On the meaning of "walls" and liquidity  (Read 1295 times)
copumpkin (OP)
Donator
Sr. Member
*
Offline Offline

Activity: 266
Merit: 252


I'm actually a pineapple


View Profile
February 23, 2012, 01:48:23 AM
Last edit: February 23, 2012, 02:02:42 AM by copumpkin
 #1
I'm just wondering how people interpret market depth around here. Please comment to elaborate on your reasoning process, if you think it's of interest.

Edit: this isn't so much a question about "fake" walls that disappear if you tickle them. I'm just asking about walls that you can assume people actually intend to leave in place.
1713507145
Hero Member
*
Offline Offline

Posts: 1713507145

View Profile Personal Message (Offline)

Ignore
1713507145
1713507145
Reply with quote  #2
1713507145
Report to moderator
1713507145
Hero Member
*
Offline Offline

Posts: 1713507145

View Profile Personal Message (Offline)

Ignore
1713507145
1713507145
Reply with quote  #2
1713507145
Report to moderator
Each block is stacked on top of the previous one. Adding another block to the top makes all lower blocks more difficult to remove: there is more "weight" above each block. A transaction in a block 6 blocks deep (6 confirmations) will be very difficult to remove.
Advertised sites are not endorsed by the Bitcoin Forum. They may be unsafe, untrustworthy, or illegal in your jurisdiction.
1713507145
Hero Member
*
Offline Offline

Posts: 1713507145

View Profile Personal Message (Offline)

Ignore
1713507145
1713507145
Reply with quote  #2
1713507145
Report to moderator
1713507145
Hero Member
*
Offline Offline

Posts: 1713507145

View Profile Personal Message (Offline)

Ignore
1713507145
1713507145
Reply with quote  #2
1713507145
Report to moderator
1713507145
Hero Member
*
Offline Offline

Posts: 1713507145

View Profile Personal Message (Offline)

Ignore
1713507145
1713507145
Reply with quote  #2
1713507145
Report to moderator
phorensic
Hero Member
*****
Offline Offline

Activity: 630
Merit: 500



View Profile
February 23, 2012, 01:58:22 AM
 #2
Who knows?  I've seen 10,000 BTC walls flash in and out of the depth chart within seconds.  It usually doesn't mean anything.  Bots will be bottin'
RyNinDaCleM
Legendary
*
Offline Offline

Activity: 2408
Merit: 1009


Legen -wait for it- dary


View Profile
February 23, 2012, 02:06:36 AM
 #3
Who knows?
I assess the situation to determine if said wall will halt movement. I look at volume, support, resistance beyond it, where we've been previously, how long it's been standing, a few others.

Then I move on my decision.  Smiley
byronbb
Legendary
*
Offline Offline

Activity: 1414
Merit: 1000


HODL OR DIE


View Profile
February 23, 2012, 02:25:42 AM
 #4
One thing I notice that people seem to mis understand is that a wall is not necessarily resistance because it might actually be providing the needed liquidity at a certain price for someone who wants to buy/sell a large amount.
Pay-per-GB seedbox for BTC!! https://justseed.it/
http://www.thebitcoinpage.com/
bitcoinBull
Legendary
*
Offline Offline

Activity: 826
Merit: 1001


rippleFanatic


View Profile
February 23, 2012, 02:54:35 AM
 #5
What's funny about walls is that while most people assume buy-walls are "fake", on the other hand, whenever an ask-wall appears they run for the hills.
College of Bucking Bulls Knowledge
RyNinDaCleM
Legendary
*
Offline Offline

Activity: 2408
Merit: 1009


Legen -wait for it- dary


View Profile
February 23, 2012, 03:04:29 AM
 #6
Quote from: bitcoinBull on February 23, 2012, 02:54:35 AM
What's funny about walls is that while most people assume buy-walls are "fake", on the other hand, whenever an ask-wall appears they run for the hills.

This is due to the ingrained "need" for fiat. They would rather be stuck with over priced fiat rather than over priced BTC.  Wink
stochastic
Hero Member
*****
Offline Offline

Activity: 532
Merit: 500


View Profile
February 23, 2012, 04:20:01 AM
 #7
Quote from: RyNinDaCleM on February 23, 2012, 03:04:29 AM
Quote from: bitcoinBull on February 23, 2012, 02:54:35 AM
What's funny about walls is that while most people assume buy-walls are "fake", on the other hand, whenever an ask-wall appears they run for the hills.

This is due to the ingrained "need" for fiat. They would rather be stuck with over priced fiat rather than over priced BTC.  Wink

Loss aversion ( see Kahneman and Tversky, 2000.  Choices, values and frames )
Introducing constraints to the economy only serves to limit what can be economical.
Pages: [1]
  Print  
Bitcoin Forum > Economy > Economics > Speculation > On the meaning of "walls" and liquidity
 « previous topic next topic »
 
Jump to:  

Powered by MySQL Powered by PHP Powered by SMF 1.1.19 | SMF © 2006-2009, Simple Machines Valid XHTML 1.0! Valid CSS!