Why BGB All-Time High May Not Stop at $6
Bitget Token (BGB), the utility token of the Bitget cryptocurrency exchange, hit a new all-time high after surging 18% in the past 24 hours. BGB hit a new all-time high even as the broader market experienced a sharp decline.
With this development, the coin continues to maintain its position as one of the best-performing coins in 2024. Here’s what’s driving the latest rally.
Bitget Token Trading Volume Increases 10x on Bullish Beliefs
On December 23, BGB trading volume was below $100 million. That number has surged tenfold and now exceeds $1 billion, according to Santiment. The sharp rise in trading volume indicates that more buyers and sellers are getting involved in cryptocurrencies.
Typically, a drop in trading volume indicates declining interest in an asset. When volume decreases, the likelihood of sustaining an uptrend decreases and prices may fall.
However, with the recent rise in prices, Demand for Bitget tokens It has risen significantly. If trading volume continues to rise along with price, BGB’s value will likely continue its upward trend.
With the development, Bitget Token Price It briefly climbed to $6.55 but has now fallen to $6.40. Despite the minor pullback, 100% of token holders were in profit.
For some, BGB’s all-time high may be a sign of a market peak. However, Santiment’s on-chain data suggests that may not be the case. One indicator that supports this argument is the market value to realized value (MVRV) long/short gap.
MVRV Long/Short Divergence checks whether long-term holders have more unrealized profits than short-term holders, or if the reverse is true. When this indicator rises and becomes positive, long-term holders have the upper hand and sentiment is bullish.
Conversely, falling or negative values on the indicator indicate dominance by short-term holders. But this is a typical bear market phase. As of this writing, the MVRV long/short differential is close to 320%, indicating The price of the coin may increase Regardless of any pullback, a new peak will occur.
BGB Price Prediction: $6 Isn’t the End Yet
On the daily chart, BGB prices continue to form Higher lows and higher highs. As a result, readings on the Momentum Oscillator (AO), which measures momentum, continue to rise.
Typically, when the AO reading is positive, momentum is bullish. On the other hand, a negative AO reading indicates a bearish outlook. Since the chart below shows the former, it’s likely that the altcoin’s value will continue to rise.
If the verification passes, then Altcoins A move beyond the candle’s top level of $6.58 to $7 is possible. In a highly bullish scenario, its value could surge to $10. However, if some holders decide to sell, BGB’s potential for a new all-time high will be nullified, which could send the coin down to $3.64.
Disclaimer
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