The Wolf Den #183 - The Truth On Buy And Sell Walls
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This week is the last chance to get up to $720 for signing up to PHEMEX! This is the only exchange I currently use to trade with low leverage (they offer high leverage as well, be careful) and they offer free spot trading as well. Definitely check the out if you are looking for an awesome place to trade BTC and alts. SIGN UP HERE!The Truth On Buy And Sell WallsWith every major Bitcoin rise, there are increasing concerns around massive buy and sell walls. Nobody is doubting the significance of psychological levels like 50K, and presumably, 75K and 100K where traders congest the order book with bids and asks, but a lot of the information we hear about buy and sell walls is incorrect.Most think of sell walls as being bearish and buy walls as being bullish. If you believe this, you are buying into the story that the whales are trying to tell you. A sell wall most often stops price so that someone can BUY. A buy wall holds it up so that they can finish SELLING.Entering an order that you do not intend to fill in order to manipulate price action is illegal in legacy markets. Since we are trading in the wild west, it’s perfectly acceptable behavior in crypto. It is called "spoofing."If you truly are trying to sell a large quantity of an asset, you would never put up a huge sell order. It’s against your own interest because you are stopping price and scaring buyers. Real sellers sell in smaller chunks as the price is rising. They may even use a buy wall to help. This strategy was publicly proven when Michael Saylor explained how he bought hundreds of millions worth of Bitcoin over a few days in tiny increments to not affect the price. Imagine if he dropped his full order onto the market, it would never fill at his desired price. As both a trader and investor, you do not need to watch order books. It’s more likely to confuse you than to help unless you are a pro. Trade the chart.I am hoping we will have more market clarity this afternoon, and will be live streaming at 2PM EST to discuss. Join me!https://www.youtube.com/watch?v=kSPjeOMKPS0In This Issue:Bitcoin Thoughts And AnalysisAltcoinsLegacy MarketsConspiracy Theorists Question Elon Musk and DogeChristie’s Auction House Accepts EthereumMike Novogratz Thinks Bitcoin ETF Is NearMy Recommended Platforms And Tools
The Wolf Den #183 - The Truth On Buy And Sell Walls
The Wolf Den #183 - The Truth On Buy And Sell…
The Wolf Den #183 - The Truth On Buy And Sell Walls
This week is the last chance to get up to $720 for signing up to PHEMEX! This is the only exchange I currently use to trade with low leverage (they offer high leverage as well, be careful) and they offer free spot trading as well. Definitely check the out if you are looking for an awesome place to trade BTC and alts. SIGN UP HERE!The Truth On Buy And Sell WallsWith every major Bitcoin rise, there are increasing concerns around massive buy and sell walls. Nobody is doubting the significance of psychological levels like 50K, and presumably, 75K and 100K where traders congest the order book with bids and asks, but a lot of the information we hear about buy and sell walls is incorrect.Most think of sell walls as being bearish and buy walls as being bullish. If you believe this, you are buying into the story that the whales are trying to tell you. A sell wall most often stops price so that someone can BUY. A buy wall holds it up so that they can finish SELLING.Entering an order that you do not intend to fill in order to manipulate price action is illegal in legacy markets. Since we are trading in the wild west, it’s perfectly acceptable behavior in crypto. It is called "spoofing."If you truly are trying to sell a large quantity of an asset, you would never put up a huge sell order. It’s against your own interest because you are stopping price and scaring buyers. Real sellers sell in smaller chunks as the price is rising. They may even use a buy wall to help. This strategy was publicly proven when Michael Saylor explained how he bought hundreds of millions worth of Bitcoin over a few days in tiny increments to not affect the price. Imagine if he dropped his full order onto the market, it would never fill at his desired price. As both a trader and investor, you do not need to watch order books. It’s more likely to confuse you than to help unless you are a pro. Trade the chart.I am hoping we will have more market clarity this afternoon, and will be live streaming at 2PM EST to discuss. Join me!https://www.youtube.com/watch?v=kSPjeOMKPS0In This Issue:Bitcoin Thoughts And AnalysisAltcoinsLegacy MarketsConspiracy Theorists Question Elon Musk and DogeChristie’s Auction House Accepts EthereumMike Novogratz Thinks Bitcoin ETF Is NearMy Recommended Platforms And Tools