Ki Young Ju has reported a significant rise in limit buy orders for altcoins, signaling a potential rally.
This surge suggests that investors are establishing strong buy walls for altcoins, excluding Bitcoin (BTC) and Ethereum (ETH), possibly in anticipation of an impending altcoin rally.
“Whales are preparing for the next altcoin rally,” Ju posted on X.
The increase in limit buy order volume indicates robust buying interest, which often precedes market upswings. For those unfamiliar, limit orders create “quote volume” on exchanges, while market orders generate “taker volume.”
Whales are preparing for the next altcoin rally.Limit buy order volume for altcoins, excluding #Bitcoin and #Ethereum, is increasing, indicating that strong buy walls are being set up. pic.twitter.com/aOe3TxwVWE
— Ki Young Ju (@ki_young_ju) July 31, 2024
Whales and institutions, such as market makers and brokerages, typically use limit orders for large trades to minimize slippage.
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Altcoins rise as Bitcoin rises
During an altcoin rally, the prices of alternative crypto experience significant increases. This surge is often driven by positive market sentiment, increased trading volumes, and a shift of investor focus from Bitcoin to altcoins.
Factors such as Bitcoin price movements, fear of missing out, and market speculation play crucial roles in an altcoin rally. When Bitcoin’s price rises, profits often flow into altcoins, further boosting their prices.
Limit order indicators are calculated by summing the difference between buy and sell quote volumes over a one-year moving window. An upward trend signifies a rise in quote buy volume, pointing to the formation of strong buy walls. This pattern suggests a potential bullish movement in the altcoin market.
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