The Bitget Token (BGB) has skyrocketed to a high of $4.97, registering a more than 470% increase from its lowest point this year. While the exact cause of this surge remains unclear, its growing market share in the crypto industry is a likely factor. CoinGecko data shows it has become the eighth – biggest exchange in the industry, handling over $91 billion in volume last month.
On – chain data reveals that the BGB price surge has triggered a Fear of Missing Out (FOMO), with the number of 30 – day active addresses rising to nearly 200, up from less than 100 in October.
However, several factors suggest the BGB price may retreat in the coming days. Firstly, it appears to have entered the markup phase of the Wyckoff Method. Following a two – year – long accumulation period, this phase is typically characterized by higher supply than demand and is succeeded by distribution and markdown.
Secondly, data from IntoTheBlock shows that the market value to realized value (MVRV) of BGB has soared to 9.83, a record high. When the MVRV indicator for an asset moves above 3.8, it is considered to be in the overbought zone. With BGB’s MVRV at 9.83, it is extremely overbought, increasing the likelihood of a pullback.
The BGB is also highly overbought as indicated by other technical indicators. The Relative Strength Index (RSI) has reached the extreme overbought level of 82, and the two lines of the Stochastic Oscillator are approaching 100.
Furthermore, BGB’s price is significantly higher than its 50 – day and 100 – day Exponential Moving Averages (EMAs). It is about 88% higher than the 50 – day EMA, suggesting the concept of mean reversion could come into play. Mean reversion implies that an asset often drops back to its moving average after a long deviation, especially when the standard deviation has reached its highest level of the year.
Similar to other popular coins like Ripple and Stellar that experienced parabolic rises, there is a strong possibility that BGB will soon face a harsh reversal as investors take their profits.
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