The “poor sentiment” surrounding Bitcoin (BTC) dominated the tendency over plenty of weeks as its value mostly remained trapped below the $28,000 level.
Nonetheless, more recent data is flashing positive tendency for the world’s largest cryptocurrency investment indicating that it can potentially potentially be on the cusp of a positive tendency breakout.
Bitcoin (BTC) Bottom Is In
BTC’s tight-range consolidation may eventually end. Glassnode co- founder Negentropic, for one, believes the lowest for the cryptocurrency investment is near and that it is only a matter of time before the price “goes off.”
Reports by his analysis, shorts are getting exhausted after failing numerous attempts to break below 200SMA, a level which he deems to be “a solid support.” With the 50SMA’s positive tendency crossover over 200SMA, Bitcoin (BTC) is expected to turn the narrative in its favor soon.
#Bitcoin bottom is in
Shorts getting exhausted after failing numerous attempts to break below 200SMA, which is a solid support.
50SMA positive tendency crossover over 200SMA, it’s a matter of when #BTC goes off pic.twitter.com/ZmKVQiQwYz
— (@Negentropic_) May 22, 2023
The development comes just days after the analytic company noted that the conviction of existing Bitcoin (BTC) holders remained “remarkably high,” even as the market witnessed extreme volatility and enormous deleveraging over the last two years.
Santiment likewise observed that investors are moving their Bitcoin (BTC) stashes from cryptocurrency exchanges to cold storage wallets. Although while existing supplies moving into self-custody is not a perfect indicator, the cryptocurrency analytic company stated that the declining quantities of Bitcoin on exchanges traditionally hint at future bull runs.
Hence, a high accumulation tendency in the backdrop of an arguably lackluster inflow of new demand and stagnancy depicted that investors view the present market condition as a chance to acquire more portions of the asset.
Confidence in Custodians at an All-Time Low
Bitcoin (BTC) holders have lost confidence in centralized cryptocurrency exchanges, a tendency that can be corroborated by the fact that supply held on exchanges has dropped to 5.84 percent – representing the weakest point in the past 5 and a half years.
The shift from custodians to self-custody systems gained traction at the beginning of 2022 and continued throughout the year. The decline became even more pronounced after the collapse of Sam Bankman-Fried-led cryptocurrency giant FTX Trading Ltd Group following which the amount of Bitcoin sitting on centralized platforms dropped below 7%.
In the previous few months, Binance Crypto exchange has likewise seen a boost in Bitcoin (BTC) outflows, indicating that numerous users incline towards self-custody instead of a third party custodian.