Bitcoin has rested comfortably beyond the $61.5K mark as the total crypto market enjoyed uptrends in the previous few weeks. However, the situation was different for traders that witnessed their returns dwindling. Notably, the Korea Premium Index, also the Kimchi Premium, has hovered at its historic lows. However, how does the Korea Premium relate to Bitcoin’s price? Moreover, can it predict BTC’s momentum?
Bitcoin’s Value and Kimchi Premium
Firstly, what is Kimchi premium? Well, it is how prices by the South Korean exchanges differ from other international platforms. Though speculations can point the price difference to inadequate high-profit investment options by South Korean investors, Kimchi Premium positions itself as a retail phenomenon.
You can use the Kimchi premium Index to analyze FOMO by retailers since Korea lacks noteworthy cryptocurrency-funds. Moreover, the country has strict fiscal control protocols.
Meanwhile, Bitcoin’s price seems to have a somewhat peculiar relationship with the Korea Premium Index. They have displayed a less or more inversely proportional connection. The Kimchi premium drops whenever BTC surges, and vice versa.
Also read:The last time the indicator touched a record low, Bitcoin witnessed a 15% price increase, and it was at the start of August. While publishing these updates, market analysts anticipate a similar BTC value – Kimchi premium Index deviation.
Keep in mind that the Korean premium declined towards zero at this writing. Such a move can confirm a massive upswing as the leading crypto sustained sideways pressure during the previous week’s actions. So, will Bitcoin witness another breakout to a new all-time high?
Other Signs Supporting a Breakout
Though the recent recovery, Bitcoin mempool remains empty. A mempool, or memory and pool contraction, is a crypto node’s approach for storing data on unconfirmed crypto transactions. It serves as a waiting room for digital transactions awaiting block inclusion.
Meanwhile, CryptoQuant data appear to show two possible reasons behind the mempool maintaining at lower zones:
- Generally reduced on-chain activity.
- Lightning network capacity uptick to 3.2 thousand Bitcoin.
Meanwhile, increased lightning network capacity has been vital. Moreover, the reduced on-chain activity displayed how retail action didn’t attain its highest potential, leaving room for Bitcoin’s price to surge. You might admit that BTC has chances to increase. Overcoming consolidation would confirm similar narratives.
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