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Bitget’s native token, BGB, has increased in price by 4% in the past 24 hours. This rally made it the top gainer in the top 100 by market capitalization during that period.
However, although this price trend seems positive, a look at BGB’s technical indicators shows that a downside is on the horizon. This analysis explains why.
Bitget is up, but the rally may not last
BGB’s Balance of Power (BoP) indicator on the 12-hour chart suggests a possible price correction for this Token. As of this moment, the index is below the zero threshold at -0.12.
The BoP indicator measures the strength of buyers relative to sellers in the market by analyzing price movements over a certain period of time. Like with BGB, divergence is formed when the value of the indicator is negative during a price increase.
This divergence shows that sellers are exerting significant influence, which could weaken the momentum of the rally or indicate indecision on the part of buyers. This indicates that the upward price movement may not be sustainable or could reverse if selling pressure increases.
Additionally, BGB’s Chaikin Money Flow (CMF), which measures the flow of money into and out of the market, is also below zero, reinforcing this bearish outlook. Currently, this index is at -0.11.
When an asset’s CMF is negative, this indicates that selling pressure prevails, with more trading volume tied to price declines than price increases. This signals bearish sentiment, indicating weakness in the Bitget Token rally and a possible uptrend reversal.
BGB Price Prediction: Potential for a new all-time high
At the moment, BGB trades at 6.44 USD. If downward pressure on prices increases, it could lose current profits and continue to decline.
According to the Fibonacci Retracement tool, its next major support lies at $4.42, which could be tested as selling pressure increases.
Conversely, if buying activity increases, the Bitget Token price could approach all-time highs of $8.50 and beyond.
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