Bitcoin Bulls Take Risk, According to Analyst Firm! “Every Time This Data Sets a New Record, Bitcoin Reaches a Peak!”
There are both bullish and bearish talks about the leading cryptocurrency, Bitcoin.
While there are differing opinions on the direction of BTC, crypto analytics firm Alphractal has offered an updated analysis.
Accordingly, Alphractal found an interesting correlation between South Korea’s KOSPI index and Bitcoin and claimed that the bull run for BTC may be coming to an end.
Is the Bitcoin Bull Running Out?
In his latest analysis, Alphractal argued that South Korea’s KOSPI index has reached a record high, which could signal the end of the BTC bull run.
According to Alphractal, when South Korea’s KOSPI index reaches a new record, this usually indicates that Bitcoin is near its cycle peak and is poised for a drop.
Tracking the historical price action of the KOSPI and Bitcoin, Alphractal found that a KOSPI peak has historically coincided with Bitcoin’s cycle peak.
Alphractal noted that after the KOSPI broke records in the second half of 2021, Bitcoin reached its own new high in November of that year and then entered a year-long decline.
“South Korea’s main stock index, the KOSPI Composite Index, hit a new record high, reaching a level not seen since 2021.
Fun fact: Every time the KOSPI hit a new record, Bitcoin was trading near its all-time high for the cycle. The last time this happened was in 2021.
The analyst firm reported that a similar situation occurred in late 2017 and in June and July 2011, when mid-cycle peaks were seen.
When risk appetite is positive, capital tends to flow into assets like the KOSPI, which are influenced by global trade dynamics, as well as emerging markets and Bitcoin. Conversely, when risk aversion prevails, both the KOSPI and Bitcoin tend to decline.
*This is not investment advice.
