- BGB faces resistance despite recent surge, signalling potential price correction.
- Technical indicators highlight selling pressure and bearish market momentum.
Bitget Token (BGB) is currently trading at $6.44, experiencing a 6% rise in the past 24 hours with a significant 68% surge in trading volume. Over the past month, BGB has surged 105%, drawing attention from market participants. However, the token remains 18% below its all-time high of $8.49, reached just 15 days ago.
Despite its impressive performance, technical indicators signal potential headwinds for the utility token of the Bitget exchange. BGB’s Balance of Power (BoP) indicator, which assesses market strength between buyers and sellers, stands at -0.12 on the 12-hour chart. This negative reading during an uptrend indicates growing selling pressure, suggesting the rally may be losing steam.
Meanwhile, Further confirming bearish sentiment is the Chaikin Money Flow (CMF) indicator, which measures the flow of capital into and out of an asset. Currently, at -0.11, it highlights that selling pressure outweighs buying activity, weakening confidence in the rally’s sustainability.
What Can BGB Traders Expect?
BGB’s on-chain metrics also reflect increasing caution. Data shows a decrease in average holding time for transacted coins, signalling rising sell-offs. Moreover, the In/Out of Money Around Price (IOMAP) metric reveals substantial resistance between $6.29 and $6.48, where a significant volume of tokens is currently at a loss.
On the technical front, BGB is forming a descending triangle pattern on the 4-hour chart, a bearish structure indicating increased selling pressure. With the Relative Strength Index (RSI) dipping below the midpoint, the token’s momentum appears to have shifted downward.
If the selling trend continues, BGB may test its support levels at $5.04 and $4.42. However, renewed buying interest could reverse the decline, potentially driving the token toward $7 or even a new all-time high above $8.50.
As market participants watch closely, the coming days will determine whether BGB can regain its bullish momentum or face further declines amid growing market pressures.
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