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Buying Pressure

Buying Pressure

Buying Pressure is when the majority of traders are buying, indicating the majority thinks the market price will go up. Buying pressure is also known as upward pressure or buying demand. Sellers are usually in the minority, so they give way to the buyers and the price rises. A large number of sellers may cause a fall in the price. Buying pressure is measured by the number of orders placed to buy over a given period.
For example, if the number of buy orders is equal to the number of sell orders, there is no buying pressure. If there are five times more buy orders than sell orders, there is a lot of buying pressure.
Buying pressure effectively shows the demand for a coin. The higher the demand, the higher the price.
Buying pressure is generally caused by increased interest in a coin, good news or an upcoming event.
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