The 3 Best Crypto Bargains to Buy for June

  • There are crypto bargains in the making on this dip.
  • Bitcoin (BTC-USD): The chief coin in charge is always on the buy list.
  • Ethereum (ETH-USD): The default toll currency is necessary to own.
  • Solana (SOL-USD): The potential challenger is the long shot bet.
A photo of various crypto coins coming out of a black leather wallet on a wooden surface.
Source: stockphoto-graf/ShutterStock.com

Wall Street investors are completely confused with this price action. Even the notes from the experts lack unison, as the forecasts are all over the map. The price action itself is also confusing, even among solid staple companies. Apple (NASDAQ:AAPL) is still 40% above its pandemic breakout. Compare that to Amazon (NASDAQ:AMZN) is at its neckline, Salesforce (NYSE:CRM) is below it. Luckily today’s topic is to a degree independent from that. My list today is to present the three best crypto bargains to buy on this dip.

I mentioned that crypto is somewhat independent of stocks. But it is also in a risk off stint where money is seeping out of it. However, this is a technical thing that started last November. Back then, crypto prices needed to hold footing to avoid this bearish outcome, but they failed. This correction is the result and should end soon.

Since we can’t exactly say when, the strategy has been to add crypto at certain stopover points. The recent lows were pit-stop number two of three, and more on this later. Perception and public opinions once again are building that crypto is dead. This is when the brave start getting back in, or seek a long term position. I did well trading it so far, and my current efforts are for building a core position.

This week there will be more headline noise from the U.S. Federal Reserve’s minutes and other economic reports. Therefore, volatility might persist one more week. Like crypto, the S&P 500 is almost at its bearish target near $3,600.

BTC-USD Bitcoin $30,081.20
ETH-USD Ethereum $2,045.31
SOL-USD Solana $53.01

Bitcoin (BTC-USD)

Bitcoin (BTC-USD) Showing Potential Path For this Correction
Click to Enlarge
Source: Charts by TradingView

What Bitcoin (BTC-USD) does, the rest do too. All crypto coins tend to follow the leader in general terms. If BTC-USD falls, they also fall, albeit at slightly different speeds. Occasionally, you have the exception like Terra (LUNA-USD) for example. Today our targets for the three best crypto bargains are major coins, so they are in lock-step. They also carry much lower risk of blow ups.

The fundamental thesis for owning Bitcoin deserves its own lengthy debate. But for the interest of brevity, we will judge its worthiness by its record. The reward for long term owners definitely warrants our attention. Besides, money will likely eventually go digital like everything else has. These crypto coins are the ones paving this path, especially the OG Bitcoin.

Over the long term, my strategy is to buy a bit at a time especially on long corrections. Earlier I noted a bearish pattern where current levels are stop number two. The primary target from the breakdown at $46,000, is near $20,000. In October of 2020, BTC-USD shocked the world as it broke out from its old high and rallied 450% to $65,000. It wasn’t a fluke because it did it twice in 2021.

Retesting the breakout neckline of such a pivotal zone would be normal price action in an abnormal rally. For the short term, there may be a 10% to 12% bounce, but it could fade to finish the correction.

Ethereum (ETH-USD)

Ethereum (ETH-USD) Chart Showing Potential Support
Click to Enlarge
Source: Charts by TradingView

The emotional part is what throws most people off when dealing with Bitcoin things. Crypto rallies so fast that most refuse to accept it. Most of us want stability and the comfort of knowing experts can second our opinion. In this case, the traditional sources of wisdom like Berkshire Hathaway’s (NYSE:(BRK-A, NYSE:BRK-B) Charlie Munger are haters. There is a long line of others like JPMorgan’s (NYSE:JPM) CEO Jamie Dimon to name another.

They cast doubt over the whole idea, but mostly out of ignorance. This merely strengthens the case for owning crypto on serious dips. The more skeptics now, the more potential chasers later. Ethereum (ETH-USD) benefits from this because it is currently the default toll token of crypto transactions. ETH-USD is how people pay for moving crypto around. So far, the interest in crypto is steadily growing even if coin prices fluctuate. In the end they will still need to buy ETH-USD to pay for actions. I am buying on this dip because I know that I will need to have ETH coins eventually.

Solana (SOL-USD)

Solana (SOL-USD_ Stock Chart Showing Potential Bottom
Click to Enlarge
Source: Charts by TradingView

The same concepts that we pitched in the prior paragraph works also for Solana (SOL-USD). It is a serious rising challenger to Ethereum. The experts cite its superior speeds and efficiency, so it has a legitimate claim to the throne. This is not an either/or situation, because there can be more than one winner.

The three best crypto bargains to buy list could include many other coins. SOL is my personal pick, but I have friends who favor Cardano (ADA-USD). The idea when trading these best-of-the-rest gang is that they are chasing two clear winners. The SOL-USD market capitalization is about 13 times smaller than Ethereum. Therein lies a catch up opportunity that could drive interest in it.

From personal experience, every time my transaction is over the Solana network it has been cheaper and faster. In the end, I bet that there is plenty of reasons to own any of the leaders for their specific reasons. Qualities may include ubiquity, speed and reliability. A list of the best crypto bargain buys can be a mile long. But I felt like it should always start with these three.

On the date of publication, Nicolas Chahine held ETH and SOL. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Nicolas Chahine is the managing director of SellSpreads.com.


Article printed from InvestorPlace Media, https://investorplace.com/2022/05/the-3-best-crypto-bargains-to-buy-for-june/.

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