Bitget Token (BGB) Reaches New ATH, Enters Price Discovery Phase

Bitget’s crypto token BGB reached another ATH following the exchange’s announcement of an 800 million token burn valued at $5 billion.

Crypto exchange Bitget has announced an 800 million token burn of its native crypto token BGB, valued at around $5 billion at current market prices. This massive burn, which constitutes nearly 40% of the total BGB supply, is part of a two-phase reduction strategy outlined in the new Bitget whitepaper.

The first phase of the burn will see 800 million BGB tokens burned, reducing the total circulating supply to 1.2 billion tokens. The second phase, to be implemented in 2025, will see Bitget allocate 20% of its profits from both exchange and wallet operations to quarterly token buybacks and burns.

These burns will be recorded on-chain, and the proceeds will be used to purchase BGB tokens from the market at each quarter’s prevailing prices. This strategy is designed to be deflationary, potentially increasing the demand for BGB tokens and putting upward pressure on their prices.

This token burn strategy is not entirely new in the cryptocurrency market. Major centralized crypto exchanges like Binance have implemented similar supply reduction mechanisms over the long term, demonstrating their effectiveness in the crypto space.

Moreover, Bitget has been expanding its ecosystem rapidly, integrating its centralized and decentralized platforms under a single token structure. This integration enables on-chain utilities and expands the use cases for BGB tokens.

Crucially, all burn transactions will be recorded on-chain, ensuring complete transparency for token holders. This move aligns with the platform’s strategy of merging its centralized and decentralized ecosystems under a single token structure while maintaining transparency through verifiable on-chain records of all burn events.

BGB technical outlook

A technical analysis of BGB reveals a strong uptrend, forming a clear ascending channel on the price chart. The token currently trades at $7.549, showing a 1.77% decline with a notable selling volume of 2.29M tokens.

The RSI indicator shows an oversold condition with a reading of 31.41, which might indicate a bottom formation after the recent pullback from its all-time high of $8.49.

Meanwhile, the MACD indicator displays bearish momentum with readings of -0.083, -0.115, and -0.033, suggesting increased selling pressure after a period of substantial gains.

Key support levels have formed along the ascending blue trend line, which acted as a reliable bounce zone throughout December. The recent consolidation pattern near the $7.00 mark could serve as a new base for future price action. The upper resistance, marked by the red arrow, coincides with the recent all-time high zone.

Bitget Token (BGB) Trading Chart From TradingView

The trading volume patterns show increased selling activity, though the overall trend structure remains intact. For traders and investors monitoring the BGB crypto token’s next moves, the $7.00 level serves as immediate support, while $8.00 represents the next significant resistance before any potential retest of all-time highs.

While BGB maintains its overall bullish structure within the ascending channel, current technical indicators suggest a period of consolidation may continue in the short term. The RSI at 31.41 and bearish MACD crossover indicate a potential for further cooling off, though the strong support level at $7.00 remains crucial.

Given the recent token burn announcement and technical setup, traders should monitor the $7.00-$7.50 range for potential entry points, with the $8.50 region serving as the next major resistance level.