Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Bitcoin (BTC) Approaches Potential Bullish Breakthrough as Bottom Appears Established: Glassnode Co-founder
The prevailing “poor sentiment” regarding Bitcoin has characterized the trend for several weeks, with its price largely remaining confined below the $28,000 threshold.
Nevertheless, more recent information is signaling a positive outlook for the leading cryptocurrency, suggesting it may be on the verge of a bullish breakout.
Bitcoin Bottom Is In
Bitcoin’s period of tight-range consolidation may be approaching its conclusion. Glassnode co-founder Negentropic believes that the bottom for the cryptocurrency is imminent and that it is only a matter of time before the price “takes off.”
His analysis indicates that short positions are becoming exhausted after multiple unsuccessful attempts to dip below the 200SMA, which he considers to be “a solid support.” With the bullish crossover of the 50SMA over the 200SMA, Bitcoin is anticipated to shift the narrative in its favor shortly.
ADVERTISEMENT
Related Posts
This development follows a report from the analytics firm, which highlighted that the conviction of current Bitcoin holders remains “remarkably high,” despite the market experiencing significant volatility and substantial deleveraging over the past two years.
Santiment also noted that investors are transferring their Bitcoin holdings from cryptocurrency exchanges to cold storage wallets. Although the movement of existing supplies into self-custody is not a definitive indicator, the crypto analytics firm stated that the decreasing amounts of BTC on exchanges typically suggest potential future bull runs.
Thus, a strong accumulation trend amidst what can be seen as a lackluster influx of new demand and stagnation indicates that investors perceive the current market conditions as an opportunity to acquire more of the asset.
Confidence in Custodians at an All-Time Low
Bitcoin holders have diminished trust in centralized cryptocurrency exchanges, a trend supported by the fact that the supply held on exchanges has decreased to 5.84% – marking the lowest level in the past five and a half years.
The transition from custodians to self-custody systems began gaining momentum at the start of 2022 and persisted throughout the year. This decline became even more pronounced following the collapse of the Sam Bankman-Fried-led FTX Group, after which the amount of BTC on centralized platforms fell below 7%.
In recent months, Binance has also experienced an increase in Bitcoin outflows, indicating that many users prefer self-custody over relying on a third-party custodian.
SPECIAL OFFER (Sponsored) Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).
PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.
