By Samuel Indyk
Investing.com – The price of Bitcoin steadied around $47,000 on Friday after selling pressure on Thursday took the world’s largest cryptocurrency to its lowest level since 19th August.
The total market cap of all cryptocurrencies is currently back above $2 trillion after briefly dropping below the figure overnight.
The majority of the top 10 cryptocurrencies were trading in the red or marginally higher but the new tenth largest cryptocurrency was outperforming.
Solana, which moved into the top 10 cryptocurrencies by market cap, was notably outperforming, trading higher by around 8% in the last 24 hours.
There was no immediate fundamental reason for Solana’s recent outperformance but yesterday Pyth Network went live on the Solana blockchain.
The launch on the Solana mainnet will allow developers to integrate Pyth Network’s real time market data into decentralised finance applications. Contributors on the project include Virtu Financial and Chicago Trading Company.
Bitcoin Technical View
Bitcoin is trading just above the $47,000 handle. The $46,800-47,000 area continues to act as support, with $46,800 representing the 50% Fib of the April all-time high to the July low.
A break below that level could open the door to the 200-day moving average around $46,000.
“A move below $46,000 could signal a broader correction in Bitcoin, with $44,000 being the next big test below,” writes OANDA Senior Market Analyst Craig Erlam. “A move back towards $40,000-41,000 would be very interesting, although there's some way to go first.”
If Bitcoin were to stem the tide and move higher, the $48,000 level could act as resistance, given it was the high from both the 14th and 16th of August. A move above there opens the way to the psychological $50,000 level.
$51,000 could then act as key resistance again, given it is the 61.8% Fib level from the April high to July low. The level acted as resistance in the latest push higher when Bitcoin hit a cycle high on 23rd August.