The “poor sentiment” surrounding Bitcoin has dominated the trend for weeks as its price has mostly remained stuck below the $28,000 level.
However, more recent data has flashed strongly for the world’s largest crypto asset indicating that it may be on the verge of a bullish breakout.
The Bottom of Bitcoin Available
Bitcoin’s tight integration may finally end. Glassnode co-founder Negentropic, for one, believes that the bottom for the crypto asset is near and that it’s only a matter of time before the price “takes off.”
According to his analysis, the shorts are weakening after failing several attempts to break below the 200SMA, a level he considers “a strong support.” With the bullish crossover of the 50SMA to the 200SMA, Bitcoin is expected to turn the narrative in its favor soon.
#Bitcoin is below
The shorts weakened after failing several attempts to break below the 200SMA, which is a strong support.
50SMA bullish crossover to 200SMA, it’s a matter of when #BTC disappear https://t.co/pfyjsmCGyE pic.twitter.com/ZmKVQiQwYz
— (@Negentropic_) May 22, 2023
The development comes just days after the analytic firm noted that the conviction of existing Bitcoin holders remains “exceptionally high,” even though the market has witnessed extreme volatility and massive deleveraging over the past two months. year.
Sentiment too observed that investors are moving their Bitcoin stashes from crypto exchanges to cold storage wallets. While the current supplies moving to self-custody is not a perfect indicator, the crypto analytical firm says that the decrease in the number of BTC on exchanges usually indicates an upcoming bull.
Therefore, a high accumulation trend in the backdrop of a potentially stagnant flow of new demand and sluggishness illustrates that investors view the current market situation as a opportunity to acquire more asset shares.
Trust in Custodians in a Low Time
Bitcoin holders have lost confidence in centralized crypto exchanges, a trend that can be confirmed by the fact that the supply held by the exchanges fell to 5.84% – which represents the lowest level in the past which is five and a half years.
The transition from custodians to a self-custody system gained traction at the beginning of 2022 and continued throughout the year. The decline became even more pronounced after the collapse of the Sam Bankman-Fried-led crypto giant FTX Group that followed where the amount of BTC sitting on centralized platforms fell below 7%.
In the past few months, Binance has also seen an increase in bitcoin flows, indicating that more users are leaning towards self-custody instead of a third-party custodian.
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