Bitcoin Steady Around $48K as OMG Token Hits 3-Year High

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While bitcoin and the broader crypto market look to be taking a breather, OMG, the native token of scaling solution OMG Network, has reached its highest level since April 2018.

 

Bitcoin, the top cryptocurrency by market value, was trading sideways on Monday – near $48,000 for the third straight day, after rising by nearly 10% on Friday. That was the biggest single-day gain in almost three months, based on CoinDesk 20 data.

The cryptocurrency rose 11.7% last week, defying what appears to be a risk-off episode in traditional markets, as the Federal Reserve ruled out plans to follow China’s lead and outlaw virtual currency businesses. Further, the U.S. Securities and Exchange Commission’s (SEC) Gary Gensler reiterated support for a bitcoin exchange-traded fund (ETF) rooted in regulated futures markets.

While increased hopes for a futures-based ETF are likely to keep the market buoyant in the short term, an eventual disappointment, if any, could bring some selling pressure.

“Run-it-up turbo and disappoint? This makes me think of July 2018, when crypto went on a manic run higher driven by misplaced ETF expectations,” the trader and analyst Alex Kruger tweeted Sunday, adding that an ETF approval would be massively bullish and lead to rotation of money into bitcoin from alternative cryptocurrencies.

The SEC has already extended its review of applications from Global X, Kryptoin, Valkyrie and WisdomTree by 45 to 60 days. The new deadline dates for the SEC to make decisions are Nov. 21 for Global X, Dec. 8 for Valkyrie, Dec. 11 for WisdomTree and Dec. 24 for Kryptoin, as CoinDesk’s Jamie Crawley reported. Several other ETF applications are pending approval in the coming weeks.

According to technical charts, last week’s move in bitcoin has opened doors for a re-test of early September highs above $52,000.

“Bitcoin finally resolved its 10-day sideways range by exceeding the downtrend which had been in place since early September,” research firm FSinsights said in an email. “Note, trends had turned negative a month ago technically, but after a visible three-wave decline into late September, Friday’s move is a big positive in helping to resolve this consolidation. The first upside target lies at September highs at $52,956, then $64,895.”

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