On Tuesday, September 21, Bitcoin sharply fell to $42K and even dropped to $41K in early trading. It was affected by the stock market crash as China’s Evergrande flopped.
It is a rare sight in the crypto community where the stock market influences the digital asset price.
However, the fall of Evergrande which pulled down the world shares also shook cryptocurrencies.
This company is the second-largest property developer by sales in China and the world’s 122nd largest group by revenue.
At the time of writing, Bitcoin is trading at $42,663.17 after falling $41,000.00 in early trading.
It has a 24-hour change of $3,422.73 fluctuating 7.43%. Currently, BTC has a market capitalization of $802.95 billion.
Additionally, Bitcoin has a 24-hour volume of $2.51 billion with a low of $40,267.00 and a high of $46,153.45.
An analyst stated that the world’s largest cryptocurrency by market cap could be at the starting point of a correction.
Based on Bitcoin’s On Balance Volume (OBV), which gauges its momentum, BTC has been traversing sideways. This began since it moved upward at the end of July.
This movement coincides with the digital assets’ former range break out alongside its current price action.
The analyst added that the bulls could encounter hedges on their attempts to recuperate Bitcoin’s previous highs if it broke OBV’s downside.
Another crypto expert stated that BTC is expected to trade at the critical support levels between $40,500 to $43,000 with $50,000 as major resistance.
He added that Bitcoin is likely to exhibit robustness on some of its fundamentals.
This is despite the current macroeconomic situation giving more negativity together with its current price action.
Crypto Prices Collapsed as Bitcoin Dropped
Furthermore, Ethereum deteriorated 9.20% to $3,009.37 with a market cap of $353.91 and a 24-hour volume of $28.94 billion.
Likewise, Litecoin sagged 7.87% to $160.17 with a market capitalization of $10.71 billion and a 24-hour volume of $3.37 billion.
Consequently, Bitcoin Cash plummeted 9.98% with a market capitalization of $10.19 billion and a 24-hour volume of $6.36 billion.
The same with Stellar which lost 8.71%. It has a market capitalization of $6.27 billion and a 24-hour volume of $893.25 million.
Also, Polkadot tumbled 8.20% to $29.46 with a market capitalization of $29.16 billion and a 24-hour volume of $4.20 billion.
In addition, Cardano slipped 5.77% to $2.13. It has a market capitalization of $68.53 billion and a 24-hour volume of $6.49 billion.