On the bitcointalk forums I hear a lot of talk about "bid walls". I have never heard of these in other types of financial markets. It seems that people use them as a way to support the price of a bitcoin.
I think i read the forums too much that I have become confused.
From what I understand. If someone makes a limit buy below the current market price then that puts it on the bid side of the order book. This will show there is demand for bitcoins. If there is no changes to the supply of bitcoins then the market price will increase. If someone were to put a limit sell order on bitcoins above the current market price, this would add supply of bitcoins to the market. If there are no other changes in demand then the price will decrease.
Correct me if I am wrong, but what I read on the bitcoin forums seem to say that if someone puts a limit buy order up large enough then that will keep the price from increasing because there is not enough supply to overcome that "wall". Also the converse is said often. That someone puts up a large sell order that supports a higher price since there is not enough demand to take that supply.
Am I misunderstanding what the folks on bitcointalk.org are writing on bid walls?