Bitget (BGB) Climbs, But the Rally May Not Last: Here's Why

Bitget's native token, BGB, has noted a 4% price surge over the past 24 hours. This rally has made it the market's top gainer among the top 100 cryptocurrencies by market capitalization during that period.

Bitget’s native token, BGB, has surged by 4% in the past 24 hours, making it the biggest gainer among the top 100 cryptocurrencies by market capitalization during that period.

However, despite this rally, a technical analysis of BGB’s price action reveals a potential upcoming decline. Here’s a closer look at the indicators suggesting this possibility.

Bitget Token (BGB) Price Analysis

BGB’s 12-hour chart shows that the Balance of Power (BoP) indicator is hinting at a potential correction in the token’s price. The indicator measures the strength of buyers versus sellers in the market by analyzing price movements within a given period.

As can be seen in the chart, the BoP is currently below zero at -0.12. This divergence suggests that sellers are exerting significant influence, potentially weakening the rally’s momentum or indicating a lack of strong buyer conviction. It suggests that the upward price movement may not be sustainable or could reverse if selling pressure increases.

Moreover, BGB’s Chaikin Money Flow (CMF) indicator, which measures the flow of money into and out of the market, is also below the zero line, further indicating bearishness. At press time, the CMF is at -0.11.

When an asset’s CMF is negative, it indicates that selling pressure dominates, with more trading volume being associated with price declines than price gains. This signals a bearish sentiment, suggesting weakness in the Bitget token price rally and an upcoming reversal in the uptrend.

BGB Price Prediction: Potential for a New All-Time High

At press time, BGB is trading at $6.44. If bearish pressure intensifies, it will likely shed its current gains and further its decline.

According to its Fibonacci Retracement tool, its next major support lies at $4.42, which may be tested as selling pressure strengthens.

On the other hand, a resurgence in buying activity could propel the Bitget token price toward its all-time high of $8.50 and above.