Knowledge exhibits the Bitcoin Korea Premium Index has taken a unfavorable worth not too long ago, one thing that would result in a drawdown within the asset’s worth.
Bitcoin Korea Premium Index Has Declined Into Damaging Values Lately
As identified by an analyst in a CryptoQuant submit, previous situations of this pattern have resulted in pullbacks for the value of the cryptocurrency. The “Korea Premium Index” is an indicator that measures the distinction between the Bitcoin worth listed on South Korean exchanges and that listed on international platforms.
This metric helps us know whether or not Korean traders are at the moment shopping for roughly of the cryptocurrency in comparison with the traders residing in different components of the world.
When the worth of the metric is optimistic, it means the value listed on the South Korean exchanges is increased than that on the worldwide exchanges proper now. Such a pattern implies that Korean holders are making use of a better shopping for stress (or maybe only a decrease promoting stress) than international traders.
Then again, unfavorable values of the indicator recommend that customers of the South Korean exchanges are promoting extra of the cryptocurrency than the worldwide holders at the moment.
Now, here’s a chart that exhibits the pattern within the Bitcoin Korea Premium Index over the previous yr:
The worth of the metric appears to have declined in current days | Supply: CryptoQuant
As proven within the above graph, the Bitcoin Korea Premium Index has had a optimistic worth for a lot of the present rally that began again in January of this yr. This is able to recommend that the Korean traders have been collaborating in a heavier quantity of shopping for than the international traders.
Lately, nonetheless, the indicator has been regularly taking place, implying that the shopping for stress from this section of the market has been dropping off. Coincidentally, the value of the cryptocurrency has total moved sideways since this pattern fashioned.
In the previous couple of days, the metric has now declined sufficient to enter into the unfavorable territory, which is an indication that the shopping for stress could now have flipped into promoting stress as a substitute.
Within the chart, the quant has marked the previous situations the place the Bitcoin Korea Premium Index had assumed some sturdy unfavorable values. It appears to be like like each time such values of the indicator appeared, the BTC worth noticed some decline shortly after.
Based mostly on this sample, the cryptocurrency could also be susceptible to one other drawdown within the close to future. Nevertheless, the metric nonetheless solely has a small unfavorable worth up to now, whereas the previous declines have usually come when the values have been a lot decrease.
This will likely imply that if the Bitcoin Korean Premium Index doesn’t lower farther from right here, the pattern that was seen prior to now won’t repeat itself.
On the time of writing, BTC is buying and selling round $27,900, up 1% within the final week.
Appears like BTC hasn't stopped its consolidation but | Supply: BTCUSD on TradingView
Featured picture from Kanchanara on Unsplash.com, charts from TradingView.com, CryptoQuant.com