Bitget Token (BGB) has been experiencing a remarkable rally lately, reaching new all-time highs almost daily. However, recent indicators suggest that this bullish trend may be slowing down, potentially leading to increased selling pressure as investors reassess their positions. The Price DAA Divergence indicator has flashed its first sell signal in four months, indicating a decline in investor participation as the market approaches the new year. This reduced participation could hinder BGB’s ability to maintain its upward momentum, making it more susceptible to short-term corrections, especially if broader market trends turn bearish.
BGB’s macro momentum is being influenced by its negative correlation with Bitcoin, currently standing at -0.16. This inverse relationship means that BGB’s price trajectory is moving opposite to Bitcoin’s, which could be concerning if BTC’s price continues to rise. However, historical data shows that BGB has seen strong recoveries when its correlation with Bitcoin improves following a low. While the negative correlation poses a short-term challenge, it also presents an opportunity for BGB to decouple from Bitcoin and establish its path based on unique market conditions.
Recently, BGB’s price experienced a 17% drop in the last 24 hours after a 104% rally in the past week. This decline could be viewed as a natural cooldown after a period of rapid growth and may be followed by further corrections in the near future. If the downtrend persists, BGB might test the $4.90 support level, potentially triggering heavy profit-taking among investors and further affecting the token’s price. However, a strong recovery driven by bullish market cues could propel BGB beyond its current all-time high of $8.49, invalidating the bearish thesis and signaling renewed momentum for the token.
It is important to note that the information provided in this analysis article is for informational purposes only and should not be considered financial or investment advice. Market conditions are subject to change without notice, and it is essential to conduct thorough research and consult with a professional before making any financial decisions. BeInCrypto is dedicated to providing accurate and unbiased reporting, and readers are encouraged to review the Terms and Conditions, Privacy Policy, and Disclaimers on the platform.
