Low Korea Premium Suggests Market Has More Room to Run

1 day ago 9

Rommie Analytics

According to CryptoQuant analyst @cryptosunmoon, the index historically dips into negative territory at the start of bullish trends. This often reflects hesitation among Korean traders, who tend to be cautious during early recoveries due to past volatility shocks.

Spikes in Premium Often Mark Euphoria and Market Tops

In contrast, when the Korea Premium spikes sharply, it usually signals peak FOMO. These moments have historically coincided with local tops in the crypto market, often preceding a major selloff.

According to the information the reasoning is simple: irrational buying behavior, especially when concentrated in one region, tends to appear near euphoric highs. That behavior often marks the final leg of a cycle.

The current low reading, however, indicates that sentiment remains grounded—far from irrational exuberance.

Current Signal Implies More Upside Before Major Risk

With the Korea Premium still suppressed, the data suggests there’s likely some time left before the next major correction.

As shown in the chart shared by @cryptosunmoon, historical peaks in the Korea Premium have acted as reliable warning signs. Today’s flat readings imply the crowd isn’t overheated yet.

This indicator, often overlooked, can serve as a psychological map of where we are in the market cycle. Right now, it shows restraint, not mania—a possible sign that this rally still has fuel left.

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