Understanding Buy and Sell Pressure in the Market
When buy orders are greater than sell orders, demand is stronger than supply. Buyers compete by raising their prices, market buy orders push the price upward, and this creates bullish pressure. In such conditions, the price tends to normaly rise.
When sell orders are greater than buy orders, supply outweighs demand. Sellers lower their prices to get filled, market sell orders push the price downward, and this creates bearish pressure. In such conditions, the price tends to normally fall.
This is the basic principle of how order imbalances influence price movement.
