It is too early to talk about a trend reversal in bitcoin

The fall that began on Sunday continued throughout Monday. The day's decline was the largest since the crisis last March.

In two days, the first cryptocurrency lost about a quarter of its value, falling below $31,000.

U.S. cryptocurrency exchange Coinbase announced outages on its retail trader portal and mobile apps that are preventing users from purchasing bitcoin. The Coinbase price is used in a basket of exchange prices to produce an index price at which futures are traded. This gives the algorithms a bearish signal, which triggers further selling.

Guggenheim Partners called for profit taking as bitcoin falls below $33,000. "Bitcoin's parabolic rise is unsustainable in the short term and vulnerable to a pullback. The technical target for the rise at $35,000 has been exceeded," writes Guggenheim Partners investment director Scott Minerd.

Bank of America chief investment strategist Michael Hartnett called bitcoin the biggest bubble of all. He explained that the recent jump in bitcoin could be another case of speculative mania, highlighting bitcoin's "increasing speculative" investment behavior.

Bitcoin's decline comes at the same time as the dollar index (DXY) is strengthening. It rose to a three-week high around 90.70. As a result, the two major currencies - digital and traditional - have once again demonstrated an inverse correlation, writes ttrcoin.

Analyst Michael van de Poppe draws a tentative scenario of bitcoin decline to $23,000.

Babel Finance's top cryptocurrency manager Simons Chen emphasized: " that we are seeing was expected, as the sharp rise in BTC from $20,000 to $40,000 over the past four weeks has increased pressure on the market and triggered selling."

Jihan Chu, the founder of Kenetic Capital, expressed a similar point of view on CNBC. He also believes that the pullback was expected. However, we should not despair. The market drop will allow investors to enter the cryptosphere at better prices. The businessman predicts that we will soon reach $50,000 again, and bitcoin could approach $100,000 in the second quarter.

"It is too early to speculate about a complete trend reversal. As at the beginning of the year, buyers may come to the aid of bitcoin, because the fundamentals have not changed yet: the Americans are preparing to sign large-scale stimulus, and markets are flooded with liquidity, which is parked in assets that show at least some positive returns," - notes the team of analysts FxPro.

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