A LARGE BID WALL DOESN'T GUARANTEE PRICE SUPPORT!
Imagine Bitcoin has a massive buy wall at a particular price. Many traders may interpret that level as strong support.
But orders in the order book can be canceled before execution.
That means a large visible bid wall does not necessarily represent buyers who will absorb selling pressure.
Placing and canceling orders to create a misleading impression of supply or demand can constitute spoofing and is prohibited in many regulated markets.
🔎 Watch closely: Are the orders actually being executed? Does the price hold when selling pressure arrives?
Never treat visible liquidity as a guarantee.
$BTC
Imagine Bitcoin has a massive buy wall at a particular price. Many traders may interpret that level as strong support.
But orders in the order book can be canceled before execution.
That means a large visible bid wall does not necessarily represent buyers who will absorb selling pressure.
Placing and canceling orders to create a misleading impression of supply or demand can constitute spoofing and is prohibited in many regulated markets.
🔎 Watch closely: Are the orders actually being executed? Does the price hold when selling pressure arrives?
Never treat visible liquidity as a guarantee.
$BTC