Bitget Token breaks $4 mark: What’s behind the price surge?

By Peter Macharia - Technical Analyst
Bitget Token (BGB)
Created by Taqi Khan from BTCRead

The Bitget Token (BGB) has experienced a remarkable surge in value over the past few days, reaching a new all-time high of $4.78 today.

This surge follows a consistent uptrend that has seen the token break previous price records and dominate the market’s gainers list. With a 14.13% increase in the last 24 hours, BGB has pushed past the $4 barrier, creating a positive sentiment among its holders and attracting further investor interest.

Strong market sentiment drives price surge

BGB saw its price rise from $4.25 to $4.70 between 6:00 AM and 11:00 AM, marking a notable 12.29% increase. This price action aligns with a surge in trading volume, which topped $509.9 million, a 53.01% increase over the previous 24 hours.

Source: CoinMarketCap

The surge in BGB’s trading volume points to a strong market for the token. This growth suggests that investors are eager to participate in the price rally, which could provide the liquidity needed to sustain upward momentum. However, a high volume often signals strong market interest, which could further stabilize BGB’s price as more traders join in.

Funding rates reflect growing market confidence for Bitget Token

The funding rate for BGB fluctuated over the past two months, reflecting changing market sentiment. The OI-Weighted Funding Rate remained negative from October to early November, indicating a bearish outlook.

However, by late November, it turned positive, signaling growing optimism in the market. This shift coincided with BGB’s price surge from under $2.00 to over $4.70 in December, driven by rising investor confidence.

Source: Coinglass

The funding rate peaked on Dec. 14th and 15th, suggesting increased risk-taking among traders in anticipation of further price gains. 

Technical indicators point to caution

The Moving Average Convergence Divergence (MACD) and Relative Strength Index (RSI) indicators show mixed signals. The MACD, currently at 0.3571, is above the Signal line, indicating bullish momentum. The histogram further supports this with positive bars, suggesting continued strength in Bitget Token price action.

Source: TradingView

However, the RSI is near the overbought level at 75.13, indicating that the token may be vulnerable to a price pullback or some period of sideways trading. In the short term, BGB stays exceptionally bullish, while investors should closely monitor a possible correction.

Related | Bitcoin’s 2024 cyclical pattern: A $220K peak?

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Peter Mwangi is a skilled crypto news writer with over three years of experience in the writing industry. He is known for his well-researched, insightful content and has contributed to major crypto publications. Peter, committed to learning and teamwork, brings great storytelling and leadership skills to the BTCRead team.
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