Cryptocurrency continues to be a popular investment choice for investors despite the bearish momentum that has characterized the market in recent times. Bitcoin, the premier cryptocurrency, has remained in an accumulation phase fueled by institutional demand and is on its way to reaching a new yearly high. This is in line with BTC’s cycle which provides for a pre-halving accumulation phase leading up to the 2024 halving event.

Data from the exchange stablecoin ratio (ESR) indicates that traders might be feeling more risk-averse, choosing to move into stablecoins as a hedge against impending losses on their bitcoin investments. Conversely, traders may be accumulating, as the indicator is reaching new highs. If a positive trend is seen in ESR alongside decreases in losses, then a surge in BTC could be on the horizon.

A number of indicators appear to be bullish on bitcoin right now, with realized prices and P/L figures attracting new investors and pushing BTC towards reaching new yearly highs. Despite the recent downtrend, bitcoin is still up 65% on the year and could well break the $50,000 resistance with the help of the upcoming halving.



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