Reading the order book shows where large orders sit, which the price alone cannot tell you.
The basics
Bids are buy orders, stacked from the highest price down. Asks are sell orders, from the lowest price up.
The gap between the best bid and the best ask is the spread. A small one means busy trading and a wide one thin trading.
Asks (sellers)
$68,2502.5 BTC
$68,2001.8 BTC
$68,150 lowest ask4.2 BTC
spread: $10
$68,140 highest bid3.1 BTC
$68,1005.6 BTC
$68,0502.0 BTC
Bids (buyers)
What to look for
| Pattern | What it looks like | What it can mean |
|---|---|---|
| Buy wall | A large bid at one price, say 50 BTC at $67,500 | Support. Price tends to hold above it until the wall is filled or pulled |
| Sell wall | A large ask at one price | Resistance. Price struggles to push through it |
| Wall absorbed | Market orders fill the wall | Often the start of a move, though not always |
| Spoofing | A large order that keeps appearing and vanishing | Probably fake, placed to sway sentiment |
Why a combined order book matters
Large traders split orders across exchanges so one big order does not move the price against them. A wall on Binance may not exist on Bybit. One exchange shows only part of the market.
The combined order book merges 18 exchanges into one view, so the support and resistance you see is market-wide. How it works.
Order book and whale trades
The order book shows orders waiting. Whale trades show orders that filled.
| You see | It means |
|---|---|
| Big wall, whale buying into it | The wall is being eaten, not added to |
| Thin book, whale trade | Little waiting to absorb it, so the same order moves price further |
| Whale selling into bids | Aggressive selling. Watch whether more follows |
Reading an order book: common questions
What is a bid and an ask?
A bid is a buy order: someone willing to buy at that price. An ask is a sell order. The small gap between the best bid and the best ask is the spread.
What is a buy wall or a sell wall?
A large order stacked at one price. A buy wall can act as support and a sell wall as resistance, until it is filled or pulled.
Why use a combined orderbook instead of one exchange?
One exchange shows only part of the market. Bitcoin trades on dozens of exchanges, and a wall on one may not exist on another. The CoinLobster combined book merges 19 of them.
