The Mysterious $120 Million Bitcoin Buy Wall And What it Could Mean

Tony "The Bull" Severino

1 year ago

3 mins read

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The crypto market is known for its wild west environment, rife with scams, bad actors, and market manipulators. Last year, the CFTC launched a probe into potential market manipulation across Bitcoin markets, yet the problem persists even today.

In this latest example, a $120 million buy wall was spotted by multiple crypto analysts overnight and into the early morning hours on leverage trading platform BitMEX. But who set the order, and what was the intent behind it?

The Curious Case of the Bewildering BitMEX Bitcoin Buy Wall

Last night, a massive buy order for Bitcoin on BitMEX appeared at $10,150 and then again later at $10,120 and sat there over the course of a few hours, pushing Bitcoin price up incrementally. Buy orders of this magnitude are rare, and when left in a large single order block, are called “buy walls.”

Buy walls can simply be large orders by large players just waiting to be filled. Wealthy investors use large amounts of capital, and could very well have an order set that’s far more than what is currently being sold on a platform.

Other times and the more likely scenario is that the buy wall was part of an elaborate strategy, or was simple spoofing – the practice of setting large orders in an attempt to encourage buying or selling, depending on if the “spoof” is a buy order or a sell order.

A few hours ago, there was a $120M buy wall on Bitmex.
Obviously someone trying to unload some corn. 📉🌽
Don't get caught with your pants down.

— The Crypto Monk (@thecryptomonk) August 28, 2019

Large buy orders like this one give crypto traders false confidence that support or buying interest below exists, and can artificially drive up the price of an asset. The inverse is true for sell walls.

Other theories include the buy wall being used to actually unload Bitcoin. One crypto analyst says that the order could have been set so the person behind the order could actually “unload” their Bitcoin. The analyst says that the buy wall was the only way the price could be sustained while the same person was dumping their Bitcoin at slightly higher prices.

130m bid order sitting at 10120 on Mex. Largest single order I've ever seen.

— Hsaka (@HsakaTrades) August 28, 2019

Open Interest Increasing, Is a Big Move Coming?

The buy wall has also had a spillover effect of renewing interest in crypto traders, as open interest has increased on BitMEX by about 11,000 BTC, or by roughly $112 million.

https://twitter.com/macnbtc/status/1166668208805482497?s=12

Open interest increasing typically precedes a big move, and given how long Bitcoin has been trading sideways, the largest move in some time is expected. One crypto analyst suggests that the “next move is going to be something else.”

BitMEX is a popular margin trading platform where traders go to take advantage of major price movements by trading Bitcoin with up to 100x leverage, multiplying any gains by a factor of ten.

Tony "The Bull" Severino

Tony "The Bull" Severino, CMT, is a distinguished figure in the cryptocurrency analysis sector, renowned for his in-depth technical expertise and innovative approach to market trends. As the Head of Research at NewsBTC, Tony leads a team dedicated to providing cutting-edge insights and forecasts, helping both novice and experienced traders navigate the complexities of the crypto market.
A seasoned Chartered Market Technician, Tony's prowess in identifying and capitalizing on market patterns is unmatched. His academic and professional journey in market analysis has firmly established him as a leading authority in technical trading strategies. Tony’s approach is heavily influenced by the principles of Elliott Wave Theory, a method known for its rigorous assessment of investor psychology and price movements.

Beyond his role at NewsBTC, Tony is the visionary founder of CoinChartist.io, an educational platform aimed at demystifying the nuances of cryptocurrency trading. CoinChartist.io serves as a valuable resource for traders seeking to enhance their technical analysis skills. The platform offers a range of learning tools and resources designed to empower traders with the knowledge to make informed trading decisions.

In addition to his educational initiatives, Tony is a prolific author and a dominant voice in the crypto community. He writes the CoinChartist VIP newsletter, a weekly dispatch that has become a staple among crypto enthusiasts, revered for its insightful analysis and actionable trading advice. This newsletter has consistently ranked as a best-seller on SubStack, boasting thousands of subscribers who rely on Tony’s expertise to guide their trading strategies.

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Before his ascent in the financial analysis world, Tony honed his skills in journalism. His background in this field has endowed him with a unique ability to present intricate market dynamics in a clear and compelling manner, making his insights highly sought after by a broad audience that ranges from casual readers to professional traders.
His professional affiliations underscore his commitment to excellence and continuous learning. As a partner of Elliott Wave International and TradingView, Tony collaborates with other leading experts to enhance his knowledge and skills. His active membership in the CMT Association further aligns him with the highest standards of industry practices and ethics.

Tony’s nickname, "The Bull," aptly reflects his aggressive and optimistic outlook on the cryptocurrency markets. His forecasts often anticipate significant upturns, earning him a reputation for bullish predictions that have frequently led to lucrative outcomes for those who follow his advice.

In summary, Tony "The Bull" Severino, CMT, is more than just a technical analyst; he is a mentor, educator, and innovator whose influence in the cryptocurrency space continues to grow. His dedication to advancing the understanding of market forces and his commitment to providing high-quality, reliable analysis make him a pivotal figure in the world of cryptocurrency trading.