Bitcoin: Market still hopeful that it will reach $70,000 by 2021

Bitcoin is about to close a month of November where volatility played a tremendous part in the cryptocurrency market. Over the past 30 days, the queen of digital currencies has seen its all-time high to date, only to embark on a remarkable 20% correction and consolidation that was cut short by the Omicron-triggered sell-off of November 26th. The monthly close points to falls that could be as much as 8%, but experts are calling for calm, as the 'crypto' accumulates a 101% boom so far this year.

After recent swings that saw the digital asset touch lows around $53,500, it was encapsulated in a range between $56,000 and $58,000 on Monday. "The crypto selloff was an overreaction and buyers are quickly reemerging as traders reassess the impact of a new coronavirus variant," commented Edward Moya, an analyst at Oanda.

Among the investors who came to Bitcoin's rescue on the dips, are two strong hands in the market. The government of El Salvador bought 100 more Bitcoins, following a drop in cryptocurrencies of around 8% that put them at around $54,237, as President Nayib Bukele tweeted last Friday. Following this purchase, the Central American country, the only one in the world that has Bitcoins in its asset reserves, raised its total exposure to the queen of 'cryptos' to 1,220 tokens worth $66.3 million.

According to a report filed today with the Securities and Exchange Commission (SEC), MicroStrategy has purchased 7,002 Bitcoins in recent weeks. The purchases occurred between October 1st and November 29th, at a total cost of more than $414 million. With these 7,002 new Bitcoins, the company now owns a whopping 121,044 Bitcoins at an average price of $29,534 each.

"Bitcoin is a part of today’s broad risk rally that stemmed from easing COVID fears but will likely struggle to completely get its groove back until vaccine efficacy results in the coming weeks confirm highly vaccinated countries are going back to lockdown mode," the expert added. In his opinion, after the boom of more than 100%, there will be no more fireworks in December and consolidation will continue for the rest of the year.

Nevertheless, there are optimists who see Bitcoin at $70,000 before the end of the year, as this is the level where bulls are eager to see a continuation of the rally before the end of the fourth quarter of 2021.

"We are at a most interesting market moment. If there is a right time to jump into the Bitcoin pool, it is right now, in the middle of a support zone," stated José María Rodríguez, analyst at Bolsamanía. That said, he advises, "a stop loss at closing prices below $53,000". "Above $60,000 would confirm a turnaround with a target at the all-time highs ($69,355) and above... $100,000? Anything is possible for Bitcoin," he concluded.