beincrypto.com
Fueled by recent positive developments for the cryptocurrency exchange, Bitget’s native token, BGB, has rocketed by double digits in the past 24 hours. The altcoin briefly traded at a new all-time high of $3.65 during Tuesday’s Asian session before witnessing a slight correction.
With a strengthening bullish bias, the BGB token price is poised to extend these gains in the short term. This analysis details why.
Bitget Receives Market’s Attention
BGB has increased by 11% in the last 24 hours, making it the market’s top gainer. The price jump follows the announcement that Bitget has been granted a Bitcoin Service Provider (BSP) License in El Salvador, a move seen as a significant step for the exchange’s expansion.
Following the news, market sentiment towards the altcoin quickly turned positive, as shown by its weighted sentiment. According to Santiment, BGB’s weighted sentiment crossed above the zero line on December 16, reversing three consecutive days of negative readings. As of now, the metric stands at 0.33.
This metric analyzes social media and online platforms to gauge the overall tone (positive or negative) surrounding a cryptocurrency. It considers the volume of mentions and the ratio of positive to negative comments. When weighted sentiment is positive, it indicates more positive comments and discussions about the cryptocurrency than negative ones.
Further, readings from BGB’s Elder-Ray Index confirm this bullish bias. As of this writing, the indicator’s value is 1.23, sitting above the zero line.
The Elder-Ray Index indicator measures the strength of bulls and bears in the market by comparing buying pressure (Bull Power) and selling pressure (Bear Power). When the value is positive, the market is experiencing more buying pressure than selling, suggesting a potential uptrend.
BGB Price Prediction: One Of Two Things May Happen
As of this writing, BGB is trading at $3.60, just below the resistance level formed by its new all-time high of $3.65. With sustained buying pressure, the altcoin could reclaim this price peak and surge past it toward the $4 zone.
However, if profit-taking activity commences, this bullish projection could be invalidated. In that scenario, the BGB token price could shed its recent gains and fall to $2.98.