We see this in verses such as: "Hashamayim kis'ii v'ha'aretz hadom rag'leye" (The heavens are my seat and the land my footrest) which is mentioned and dissected in one othe first sections of the Baal HaTanya's Torah Ohr, if memory serves.
It resonates nicely with my post about Rebbe Natan's Torah in Likkutei Halachot about returning the world to sleep in order to complete it. Apparently, when we fuse Rebbe Natan with Reb Elimelech we see that: By being in a state of sleep, of bitul of the world, we are able to connect to God's attribute of bitul, just as he is said to be sleeping in this world because he witholds of himself so that the world continues to exist. When God 'negates' his 'essence', the world is the direct consequence, when we negate the world, we're back to God's essence.
It also makes for interesting relationships between other belief systems about the 'great sleeper' archetype, but this isn't the place for these things.
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