Bitcoin’s value fell to a weekly low of $50,600 on Feb. 23, down 5% within the final three days, however a uncommon shopping for frenzy noticed throughout Korean exchanges offers recent market insights.
Cryptocurrency exchanges in South Korean markets have witnessed an uptick in Bitcoin (BTC) buying and selling this week. Historic tendencies recommend that this might considerably affect Bitcoin’s short-term value motion.
Korean traders enhance shopping for strain amid falling costs
Following a blistering 27% uptrend within the first half of February, Bitcoin’s value has struggled to maintain the momentum this week. After hitting a yearly peak of $52,985 on Feb. 20, BTC value has now tumbled 5% to a brand new weekly low of $50,600 on the time of writing on Feb. 23.
Earlier this week, crypto.information reported on South Korean political events espousing pro-crypto insurance policies favoring ETFs and delays on further taxes. A uncommon shopping for development has emerged amongst crypto traders in South Korean markets amid the falling Bitcoin value.
Nevertheless, historic tendencies recommend this might additional exacerbate Bitcoin’s ongoing value dip.
![Bitcoin (BTC) Korean Premium Index vs. Price](https://crypto.news/app/uploads/2024/02/image-78.png)
CryptoQuant’s Korean Premium (KP) Index tracks the worth hole between South Korean exchanges and different exchanges. Rising values recommend elevated shopping for exercise amongst Korean traders and vice versa.
The KP index has spiked 400% from 1.03 to 4.54 between Feb. 14 and Feb. 23, coinciding with Bitcoin’s ongoing value correction.
Traditionally, there was a noticeable correlation between the BTC value and the Korean Premium Index. When the KP Index spikes, indicating heightened shopping for exercise amongst Korean traders, Bitcoin’s value typically experiences downward strain or adverse correlation.
Bithumb, Upbit, Coinone, and Korbit are the main crypto exchanges in South Korea, often called “The Huge 4.” These platforms host 90% of all crypto property held by the nation’s residents, in keeping with Seoulz.com analysis
The long-term inverse relationship with BTC costs means that fluctuations within the Korean market can affect broader market sentiment and contribute to cost volatility within the cryptocurrency ecosystem.
Bitcoin value prediction: BTC Can Discover Assist at $48,900
If this uncommon adverse divergence between Bitcoin value and Korean market exercise repeats, BTC will probably dip beneath $50,000. Moreover, with Bitcoin ETFs as a consequence of shut buying and selling for the week of Feb. 23, institutional demand for BTC will probably decline additional within the days forward.
Capitalizing on these vital elements, bears might make a brazen try to drive a speedy downswing towards $45,000.
On this state of affairs, Bitcoin shedding the $50,000 assist might set off a freefall towards the 20-day SMA value of $48,942. Contemplating the general sentiment surrounding the crypto markets remains to be largely bullish, BTC bulls might mount a consolidation buy-wall at that key assist degree.
![Bitcoin (BTC) Price Prediction](https://crypto.news/app/uploads/2024/02/image-77.png)
Then again, Bitcoin might obtain a requirement surge from leveraged bullish traders trying to avert margin calls on the $50,000 degree. On this case, Bitcoin value might expertise an upswing towards the following important resistance on the $55,500 space, as depicted by the higher Bollinger Band indicator.