Bitget’s BGB Tops Market Gains with 4% Rise, but There’s a Catch

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In the last 24 hours, Bitget’s native token, BGB, has experienced a 4% increase in price, making it the highest percentage gainer among the top 100 cryptocurrencies ranked by market capitalization during this timeframe.

On the surface, the increasing trend in price for BGB may appear to be bullish. But upon examining its technical indicators, there’s an indication of an impending downturn. Here’s the reasoning behind it.

Bitget Climbs, But the Rally May Not Last

Based on the analysis of BGB’s Balance of Power (BoP) on a 12-hour scale, there could be an upcoming adjustment in the token’s value. At present, the BoP indicator stands at -0.12, suggesting a possible decrease.

In simple terms, the BoP (Buyer-Seller Power) indicator determines the balance between buyers and sellers in a market by examining price changes over a specific timeframe. Similarly to the BGB (Bid-Ask Spread Gap), a divergence occurs when the indicator shows a negative value during an uptrend in prices.

This disparity implies that sellers hold substantial power, possibly slowing down or even reversing the rally’s progress if their pressure continues to increase. It might mean that the current price surge is questionable and may not last long.

Additionally, the Chaikin Money Flow (CMF) from BGB, a tool that indicates the movement of funds into and out of the market, lies beneath the zero mark. This suggests the prevailing bearish sentiment, with a value of -0.11 as observed currently.

If an asset’s Cumulative Moving Factor (CMF) is below zero, it means that there’s more trading activity linked to price drops than price increases for this asset. This pattern suggests a pessimistic outlook, implying potential weakness in the Bitget token’s price surge and a possible shift from the upward trend to a downward one.

BGB Price Prediction: The Case for a New All-Time High

As I analyze the current market situation, I can report that BGB is trading at approximately $6.44. Should bearish sentiment escalate, this stock may lose its existing gains and potentially deepen its downward trend.

Based on the Fibonacci Retracement analysis, the potential major support level for it is expected to be around $4.42. This level might be tested as the selling pressure increases.

Conversely, an increase in purchasing activity might push the Bitget token’s price towards its record high of $8.50 and potentially even beyond that point.

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2025-01-08 12:05