BGB Gained 18%: $6.55 in 24 Hours, Volume Increased 10 Times, Exceeded $1 Billion!

MVRV Long/Short Spread +320%: Opportunities for Long-Term Investors!

Bullish Momentum with Awesome Oscillator: BGB Could Rise to $7, Selling Pressure Could Retreat to $3.64

Bitget Token (BGB), the utility token of Bitget exchange, managed to reach a new all-time high, gaining 18% in the last 24 hours. This rise comes amid significant declines in the overall market, and BGB is on track to become one of the best-performing coins of 2024. Here are the factors that led to this rise:

BGB Volume Increases 1,000%: Bullish Claims Reinforce

As of December 23, BGB’s trading volume was under $100 million. However, according to Santiment data, that volume has increased tenfold, exceeding $1 billion. This sudden increase in volume shows that the number of buyers and sellers trading with BGB is increasing rapidly.

Generally, declines in volume indicate that interest in an asset is decreasing and that an uptrend may be weakening. However, with the recent price increase, it is clear that demand for Bitget Token is increasing. If the volume and price increase continue together, it is possible that BGB may continue its uptrend.

With this development, Bitget Token briefly rose to $6.55 but is currently trading at $6.40. Still, all token holders are in profit.

Some traders may see this record high as a market peak. However, according to Santiment’s on-chain data, the situation may be different. One indicator supporting this view is the MVRV Long/Short Spread.

MVRV Long/Short Spread and Opportunities for Long-Term Investors

The MVRV Long/Short Spread is an indicator that shows whether long-term holders have more unrealized profits than short-term holders. When the indicator is rising and gives a positive reading, long-term holders are in control of the market and sentiment is positive.

Currently, the MVRV Long/Short Spread is around 320%, indicating that the token’s price could reach new highs even if it experiences a pullback.

Awesome Oscillator and Bullish Momentum

An examination of the daily chart shows that the BGB price is making higher lows and higher highs. This has caused the readings of the Awesome Oscillator (AO), a momentum indicator, to continue to rise. When the AO indicator is positive, it is generally considered that bullish momentum is strong. This suggests that the value of BGB could continue to rise.

If this uptrend continues, the BGB price could rise from $6.58 to $7. In a strong bullish scenario, the price could even rise to $10. However, if some investors decide to sell, the possibility of a new record could end and the price could drop to $3.64.