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MicroStrategy is buying the dip – Should you follow their lead?

With smart money digging in, Bitcoin and Ethereum come across as worthy buys in the crypto dip.

Key points:

  • Smart money is buying crypto and could be a leading indicator that the market could rebound.

  • Following the lead of institutional money, Bitcoin and Ethereum could be worthy buys today.

MicroStrategy is buying the current Bitcoin drop, an indicator that they have positive expectations of the market long-term. This indicates that those with in-depth knowledge of crypto, and the financial markets in general, expect the cryptocurrency market to do well in the future. 

With this confidence boost, what are some of the best cryptocurrencies to buy the dip in anticipation of the next bull run?

Bitcoin (BTC)

In the financial markets, one of the best ways to make money is to follow the moves of the big money players. As such, now that companies that hold billions of dollars worth of BTC are buying, it makes sense to follow their moves. 

Bitcoin BTC/USD is currently trading at $19k, which means it is now 71% off its most recent all-time highs. If Bitcoin’s history is anything to go by, then the odds are that it could be close to the bottom. 

In essence, getting in now and holding long-term could be a high-reward play if Bitcoin retests its all-time highs. Most analysts speculate that Bitcoin could test $100k in the next bull run.

Over and above the speculation, there are concrete reasons to believe that Bitcoin could push through $100k. For instance, Bitcoin adoption as an investment and for payments is rising. 

On top of that, Bitcoin has a capped supply of only 21 million. A considerable amount of Bitcoins is already lost for good, and the Bitcoin halving has ensured that the number of coins entering circulation is slowed down over time.

This low supply and growing adoption make Bitcoin one of the best cryptocurrencies to buy in the dip and hold long-term. 

Ethereum (ETH)

Like Bitcoin, Ethereum ETH/USD is trading at record lows from its most recent highs. From highs of $4800 back in November 2021, Ethereum is barely holding above $1000. Despite this price drop, Ethereum fundamentals are getting better. For instance, Ethereum is currently in the process of a shift to Proof-of-Stake. This will allow most transactions to be completed on layer-2 networks and take the load off the main chain.

The impact will be lower gas fees, faster transaction speeds, and better adoption odds for Ethereum. On top of that, the Ethereum network is now deflationary and will have an accelerated token burn once it starts running as Ethereum 2.0. This will mean demand chasing a declining number of tokens over the years.

It is not hard to see why Ethereum has growth potential and is one of the best cryptocurrencies to buy in the current cryptocurrency dip.

The post MicroStrategy is buying the dip – Should you follow their lead? appeared first on CoinJournal.

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The safest cryptocurrencies to buy in the bear market

These three make for value buys now that they are trading at record lows

Key points:

  • While the market is heavily bearish, BNB, ATOM, and BAT have strong odds for long-term growth. 
  • These three are not only trading at record lows, but they also have fast-growing adoption.
  • This could influence their value appreciation long term. 

The cryptocurrency bear market continues to bite hard, and Bitcoin is now back to $20,000. As long as the bear market persists, altcoins will likely drop further. There is also the risk that some altcoins may never recover. In previous cryptocurrency bear markets, many altcoins went down but never made a comeback.

However, based on core fundamentals and adoption levels, certain altcoins have not only a strong chance of surviving but also a strong rebound. Here’s why…

Binance Coin (BNB)

Binance Coin BNB/USD is one of the most adopted cryptocurrencies in the market. It started as a utility token for paying fees on the Binance exchange, but its use case has since expanded with the growing Binance network, Today, investors can stake Binance Coin, trade it, and use it to pay fees in the Binance Smart Chain, and a host of other Binance products. 

This use case increases the odds of Binance Coin surviving the current bear run and also making new highs once bulls regain control. Such a move could be reinforced by the fact that Binance Coin is a deflationary cryptocurrency and records a drop in total supply every quarter.   

Basic Attention Token (BAT)

Like Binance Coin, there is a real utility for Basic Attention Token BAT/USD. The BAT token powers adverts and is used for rewarding users of the Brave Browser. In the last few years, the Brave Browser has become one of the essential browsers in the market. 

Due to this browser’s heavy focus on privacy, it has a high degree of growth potential. This makes BAT one of the safer cryptocurrencies that you can bet on Today. 

Cosmos (ATOM)

Cosmos ATOM/USD is another cryptocurrency you can bet will be around for many years. That’s because of the idea behind it and the fact that adoption is gaining momentum. 

Cosmos is a blockchain that aims to interconnect other blockchains in what would be considered an internet of Dapps. This is a big deal as the whole point of decentralized applications is to build an entirely new internet, one that gives more power to the user. 

Besides its growing adoption, COSMOS is built on rock-solid technology. The tech behind COSMOS is so powerful that it has been co-opted into many other cryptocurrencies. In essence, the odds of growth are pretty high as more networks continue to launch and interconnect through the COSMOS blockchain.

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Polkadot’s DOT bearish weakness to accelerate if $6.5 level fails to hold

  • Polkadot is regarded as the blockchain of blockchains.

  • Native token DOT has been bearish slightly above the $6.5 support.

  • If DOT breaks below $6.5, the price could fall further to $4.

Polkadot’s native token DOT/USD is trading at 6.73. The price is close to or at a support of $6.5, the lowest since January 2021. Although the price recovered to a high of $8.45 in recent weeks, it has since lacked a bullish impetus. Investors should watch $6.5 as it could be a turning point for DOT or start a further decline.

Polkadot is described as a “blockchain of blockchains.” It connects blockchains that would otherwise be incompatible with each other. It unlocks value by allowing data transfers across blockchains. In line with the goal, Polkadot launched a cross-chain messaging system in May. The system allows native transfers of tokens across parachains. Polkadot’s native token DOT allows staking and governance on the protocol. It is also available for trading in other exchanges.

Just like other cryptocurrencies, DOT has been highly volatile. It once traded at a high of $56 in November last year, at the height of the crypto boom. The recent crypto weakness means that DOT is yet to stage a lasting comeback.

 DOT risks another low if $6.5 support fails to hold

Source – TradingView

The MACD line closed below the moving average, signaling a bearish move for DOT. A RSI shows oversold conditions, but the price is yet to hit the support. More weakness in the price is expected as bearish sentiment prevails. A bullish reversal could occur at $6.5. Failure to reverse at the support would open DOT to further decline to a support around $4.

Summary

DOT/USD is bearish approaching a key support of $6.5. If the price fails to rebound at the support, the crypto token could proceed to $4. Investors should watch $6.5 for price action. Still, there is no indication the price will go higher at the support. Buyers should be prepared for further downside.

The post Polkadot’s DOT bearish weakness to accelerate if $6.5 level fails to hold appeared first on CoinJournal.

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Does Solana’s token SOL have a bullish case after recent gains?

  • Solana’s SOL has recovered from the bottom of $32.

  • Solana is touted as an Ethereum killer, but frequent network issues are a concern.

  • Price is yet to find lasting bullish momentum as resistance at $42 keeps it lower.

As most cryptocurrencies trade at multi-year lows, price bottoms are perfect buying opportunities. Solana SOL/USD, one of the booming cryptos in 2021, trades at $32. The price is significantly below its all-time highs of above $250. The cryptocurrency traded at $42 some days ago, a significant jump from the lows of $26. Now, SOL seems to have been trapped below a resistance at $42. 

To see a lasting recovery in price, SOL needs to break above $42. Although the price seems to have broken above the downtrend, SOL remains bearish. The bear weakness in SOL emanates from the general market and the network’s shortcomings.

Solana is often touted as Ethereum’s killer. The labeling comes from its similarities to Ethereum while offering a more scalable ecosystem. The ecosystem also offers faster and less expensive transactions compared to Ethereum. The prior year’s gains underlined the trust that Solana had built in the blockchain industry. However, several hacks and network outages have accelerated SOL’s market weakness. Besides the sector weakness, Solana needs to address network issues to compete with Ethereum.

SOL technical analysis shows waning bullish momentum

Source – TradingView

On the shorter 4-hour time frame, SOL is under pressure after failing to break past $42. The weakness underlines the lack of directional move for the token. An RSI of 25 suggests the token is currently oversold. However, there is still room to move lower as the next support stands at $26. As long as the bear crypto market continues, SOL will remain trapped below $42. We cannot rule out a break below the $26 support.

Summary

Solana’s SOL is bearish. The token failed to break past $42 and is going lower. The next level to watch is $26, but the price can break lower.

The post Does Solana’s token SOL have a bullish case after recent gains? appeared first on CoinJournal.