Date: Sat, Jan 11, 2025, 04:39 AM GMT
In the cryptocurrency market, after a bearish December, the historical downside performance of January appears to hold true. This week saw a sharp downturn with Bitcoin (BTC) dropping from $102K to its current fluctuating level of $94K. Furthermore, the rise in BTC dominance to above 58.15% triggered a broader decline across the altcoin market.
However, defying this trend, the centralized exchange (CEX) token Bitget Token (BGB) has emerged as a standout performer. Over the last 30 days, $BGB has surged by over 100%, showcasing exceptional strength amid a bearish environment.
Source: Coinmarketcap
Key Factors Behind BGB’s Rally
The rally in BGB’s price can be attributed to recent developments that have significantly bolstered investor confidence:
1.Regulatory Approval in El Salvador: Bitget secured approval from El Salvador's Central Reserve Bank to operate as a Bitcoin Service Provider, enabling fiat-to-Bitcoin exchange services and custody offerings.
2.Major Token Burn: Bitget executed a substantial burn of 800 million BGB tokens, reducing its total supply by 40%. The exchange has also committed to ongoing quarterly burns, creating scarcity and driving token value upward.
Can This Breakout Fuel Further Gains?
In the past 24 hours, BGB has risen by over 5%, breaking out from a key resistance zone at $6.72, pushing its price to the current level of $6.94.
Bitget Token (BGB) 4H Chart/ Coinsprobe (Source: Tradingview)
Before this breakout, BGB also cleared a descending trendline resistance at the $6.30 level (marked with red circles on the chart). Previously, similar trendline breakouts have led to significant rallies in BGB. For example, previous breakouts pushed the token to new all-time highs.
If this pattern repeats, BGB could approach its all-time high of $8.50, representing a potential 27% upside from the breakout point at $4.70, which now acts as a strong support level.
Technical Indicators Support the Bullish Momentum
MACD (Moving Average Convergence Divergence): The MACD indicator is showing bullish momentum, with the MACD line crossing above the signal line, a positive sign of continued upward price action.RSI (Relative Strength Index): The RSI stands at 75.22, indicating strong buying momentum. While approaching overbought territory, it suggests buyers remain in control.
Conclusion
BGB's impressive rally, coupled with its key technical breakout, positions it as one of the best-performing assets in the market. If Bitcoin (BTC) manages to maintain its critical support zone between $91K and $94K, it could stabilize the broader market and support further gains in altcoins like BGB.
For now, all eyes are on whether BGB can sustain its momentum and challenge its all-time high in the coming days.
Get more updates on: coinsprobe.com
Disclaimer: This article is for informational purposes only and not financial advice. Always conduct your own research before investing in cryptocurrencies.
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