Bitget’s crypto token BGB reached another ATH following the exchange’s announcement of an 800 million token burn valued at $5 billion. This 40% reduction in total supply and the integration of Bitget Wallet Token (BWB) has positioned BGB among the top 20 cryptocurrencies with a market capitalization of over $11 billion.
The platform now processes daily trading volumes of $30 billion, serving 45 million users across its expanding ecosystem. As the BGB token enters a new price discovery phase, analyzing key technical indicators and market patterns becomes crucial for understanding potential price movements.
Strategic Bitget token burn sets new industry standard
The announced token burn marks a significant shift in BGB’s tokenomics through a two-phase reduction strategy. The initial phase involves burning 800 million BGB tokens, effectively removing 40% of the total supply and reducing circulation to 1.2 billion tokens. This reduction represents one of the largest token burns in cryptocurrency history, valued at over $5 billion at current market prices.
Starting in 2025, Bitget plans to implement a systematic quarterly burn mechanism, diverting 20% of its profits from both exchange and wallet operations toward token buybacks and burns. These profits will be derived from multiple revenue streams, including spot trading and NFT transaction fees.
Each burn transaction will be recorded on-chain, providing complete transparency for token holders. Similar token burn strategies have proven effective in the cryptocurrency market, with major exchanges like Binance demonstrating the long-term value of systematic supply reduction mechanisms.
The burning mechanism demonstrates Bitget’s commitment to a deflationary model, potentially creating upward pressure on the BGB token price through reduced supply. This approach aligns with the platform’s strategy of merging its centralized and decentralized ecosystems under a single token structure while maintaining transparency through verifiable on-chain records of all burn events.
Bitget token (BGB) technical outlook
The technical analysis of BGB shows a strong upward trend, forming a clear ascending channel. The token currently trades at $7.549, experiencing a 1.77% decline with a notable selling volume of 2.29M. The RSI indicator at 31.41 suggests an oversold condition, potentially indicating a temporary bottom formation after the recent pullback from its all-time high of $8.49.
Similarly, the MACD indicator displays bearish momentum with readings of -0.083, -0.115, and -0.033, suggesting increased selling pressure. However, this comes after a period of substantial gains, making it a natural technical correction rather than a trend reversal.
Key support levels have formed along the ascending blue trend line, which has acted as a reliable bounce zone throughout December. The recent consolidation pattern near the $7.00 mark could serve as a new base for future price action. The upper resistance, marked by the red arrow, coincides with the recent all-time high zone.
Bitget Token (BGB) Trading Chart From TradingView
Bottom line
Trading volume patterns show increased selling activity, though the overall trend structure remains intact. For traders and investors monitoring the BGB crypto token’s next moves, the $7.00 level serves as immediate support, while $8.00 represents the next significant resistance before any potential retest of all-time highs.
While BGB maintains its overall bullish structure within the ascending channel, current technical indicators suggest a period of consolidation may continue in the short term. The RSI at 31.41 and bearish MACD crossover indicate a potential for further cooling off, though the strong support level at $7.00 remains crucial.
Given the recent token burn announcement and technical setup, traders should monitor the $7.00-$7.50 range for potential entry points, with the $8.50 region serving as the next major resistance level.
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