Sentiment: Negative
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Bitcoin Korea Premium Index Turns Red, Decline Incoming?
By Hououin Kyouma at 2024-11-28 21:38
Sentiment: Negative
Data shows the Bitcoin Korea Premium Index has taken a negative value recently, something that could lead to a drawdown in the asset’s price. Bitcoin Korea Premium Index Has Declined Into Negative Values Recently As pointed out by an analyst in a CryptoQuant post, past instances of this trend have resulted in pullbacks for the price of the cryptocurrency. The “Korea Premium Index” is an indicator that measures the difference between the Bitcoin price listed on South Korean exchanges and that listed on foreign platforms. This metric helps us know whether Korean investors are currently buying more or less of the cryptocurrency compared to the investors residing in other parts of the world. When the value of the metric is positive, it means the price listed on the South Korean exchanges is higher than that on the global exchanges right now. Such a trend implies that Korean holders are applying a higher buying pressure (or perhaps just a lower selling pressure) than foreign investors. On the other hand, negative values of the indicator suggest that users of the South Korean exchanges are selling more of the cryptocurrency than the global holders currently. Related Reading: Bitcoin Loss Taking Spikes, Why This Could Be Bullish Now, here is a chart that shows the trend in the Bitcoin Korea Premium Index over the past year: The value of the metric seems to have declined in recent days | Source: CryptoQuant As shown in the above graph, the Bitcoin Korea Premium Index has had a positive value for much of the current rally that started back in January of this year. This would suggest that the Korean investors have been participating in a heavier amount of buying than the foreign investors. Recently, however, the indicator has been gradually going down, implying that the buying pressure from this segment of the market has been dropping off. Coincidentally, the price of the cryptocurrency has overall moved sideways since this trend formed. In the last few days, the metric has now declined enough to enter into the negative territory, which is a sign that the buying pressure may now have flipped into selling pressure instead. In the chart, the quant has marked the past instances where the Bitcoin Korea Premium Index had assumed some strong negative values. It looks like whenever such values of the indicator appeared, the BTC price observed some decline shortly after. Related Reading: Bitcoin Price Poised To Hit $50,000, This Crypto Expert Predicts Based on this pattern, the cryptocurrency may be at risk of another drawdown in the near future. However, the metric still only has a small negative value so far, while the past declines have generally come when the values have been much lower. This may mean that if the Bitcoin Korean Premium Index doesn’t decrease further from here, the trend that was seen in the past might not repeat itself. BTC Price At the time of writing, BTC is trading around $27,900, up 1% in the last week. Looks like BTC hasn't stopped its consolidation yet | Source: BTCUSD on TradingView Featured image from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com Continue reading...
Categories: Bitcoin
Tags: #Bitcoin #bitcoin #bitcoin bearish #bitcoin decline #Bitcoin Korea Premium Index #btc #btcusd
Source NewsBTC