Bitcoin (BTC) Is As Close To Bullish Breakout As It Is To Bottom: Glassnode Co-Founder

The “bad sentiment” surrounding bitcoin dominated the trend for several weeks as its price mostly remained below the $28,000 level.

However, recent data has been bullish for the world’s largest crypto asset, indicating it could potentially be on the cusp of a bullish breakout.

bitcoin is at the bottom

Bitcoin’s tight-range consolidation may finally be coming to an end. Glassnode co-founder Negantropic, for one, believes that the bottom is near for the crypto asset and it is only a matter of time before the price “takes off”.

According to his analysis, the bears are getting exhausted after several failed attempts to break below the 200SMA, a level he considers “solid support.” With the bullish crossover of the 50SMA over the 200SMA, Bitcoin is expected to turn the narrative in its favor soon.

#bitcoin is at the bottom

The bears are getting exhausted after several failed attempts to break below the 200SMA, which is a solid support.

50SMA Bullish crossover above 200SMA, it’s a matter of when #B T c goes away pic.twitter.com/ZmKVQiQwYz

— (@Negentropic_) May 22, 2023

The development comes days after the analytical firm noted that the confidence of existing bitcoin holders remained “remarkably high” even though the market has seen extreme volatility and steep declines over the past two years.

sensitivity too saw That investors are moving their bitcoins from crypto exchanges to cold storage wallets. While the current supply going into self-custody is not a perfect indicator, the crypto analytical firm said that the decreasing volume of BTC on exchanges generally indicates a future bull run.

Therefore, a high accumulation trend against a backdrop of arguably low inflow of new demand and stability indicates that investors view the current market condition as an opportunity to acquire greater shares of assets.

Trust in custodians at an all-time low

Bitcoin holders have lost faith in centralized crypto exchanges, a trend that can be corroborated by the fact that the supply held on exchanges has dropped to 5.84% – representing the lowest level in the last five and a half years.

The shift from custodian to self-custody system gained traction in early 2022 and continued throughout the year. The decline became even more apparent after the collapse of crypto giant FTX Group led by Sam Bankman-Fried, after which the amount of BTC sitting on the centralized platform dropped below 7%.

Binance has also seen an increase in bitcoin outflows over the past few months, indicating that many users are leaning towards self-custody rather than third-party custodians.