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RE: BTC pain phase has begun
FYI, the orderbook is not what moves the price, ever. The visible orders are very very small compared to the market orders (which are never shown in the orderbook)
Sorry to burst this bubble, but market orders per day are 10-20 times bigger than all limit orders combined. Therefore the orderbook is useless information.
Good clarification and an important one. I have also looked at explored the orders that actually get on the blockchain via the block chain explorers that you can find online, but there is no way to keep up with that without a full days study. The speed of transactions are still faster than what the mind can capture by glimpsing.
So you're saying that this sort of thing synchronised simultaneously over several exchanges (which is how I normally see it) has no effect on price? I beg to differ and I then also raise the question as to why it is done.
What do you mean? A bid or ask wall occuring over several exchanges at the same time? Is that what you are asking?
If so, I can answer that. If you had millions to invest, you would want to make sure, that you get the best entry possible right? Of course a big buyer or seller will spread out his bids and asks over several exchanges, because if he did not, it would be difficult for him to get his big order filled at the same entry price. Unless an even bigger player wants to take the opposing part of his bid or ask.
He also does not want to put all eggs in one basket... as having all money on one exchange is the single most stupid thing you can do.
Have you ever looked at the orderbook during a big crash? If not, you should. Those limit orders mean absolutely nothing.
But those walls don't stay there, they vanish and reappear, and they're never at the trading price either, always a few dollars away from it. If the trading price reaches them, they vanish.
I must admit that I haven't caught an orderbook during a crash. Thanks. I'm making a mental note to do so.