11.01.202110:31 Forex Analysis & Reviews: End of rally or small correction? Bitcoin drops by almost 15%

On Monday morning, the value of the most popular digital currency dipped by more than 14% falling below $35,000.

According to CoinMarketCap, which calculates the average price of more than 20 exchanges, at the time of writing, the price of bitcoin edged lower by 14.1% to $34,515. On one of the largest cryptocurrency exchanges, Binance, BTC lost about 14.6% decreasing to $34,546. Nowadays, the share of the number one cryptocurrency accounts for about 68.7% of the entire global cryptocurrency market.

Last Friday, bitcoin hit an all-time high of $41,057. After some time, the virtual currency began to adjust and at midnight on Monday fell below $37,000. Earlier, during today's trading, BTC went down to $33,600, its lowest level since January 5.

Analysts say that such a drop in bitcoin was quite expected. Despite the fact that the social matrix of the cryptocurrency market still demonstrates strong bullish sentiment, during the current week, BTC (like most altcoins) is most likely to correct downwards a little.

As for today, experts assume that BTC may fall to the level of $34,800 at the close of the session.

In 2020, bitcoin soared by 380%. It began to rise markedly in late December. So, on December 16, 2020, BTC grew above a record high of $20,042, logged in 2017. Since then it has been reaching new highs slowly but surely. In the first days of 2021, the value of bitcoin updated several new highs and within a day surged from $36,000 to $40,300.

However, despite some similarities in the behavior of bitcoin with a roller coaster, according to the long-term forecasts, the prospects of the digital coin are quite optimistic. Many analysts believe that in 2021, BTC will become a more profitable investment than gold. In addition, they are confident that bitcoin will reach the $50,000 level rather than fall to $20,000.