Bitcoin Korea Premium Index Turns Red, Decline Incoming?
07 Abril 2023 - 1:00PM
NEWSBTC
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
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