Crypto selling is an opportunity, two traders say. What they would be buying

Cryptocurrencies are in for another volatile week.

The price of bitcoin swung below the psychologically important $30,000 mark and briefly went negative for the year on Tuesday before mounting a significant rebound, the latest in a series of wild moves this month. Other major digital currencies including ethereum and litecoin also endured heavy selling.

Steep as they may seem, these pullbacks are creating entry points for investors, two market analysts told CNBC's "Trading Nation" on Tuesday.

"I definitely see this as a buying opportunity if you're looking further out," said New Street Advisors Group founder and CEO Delano Saporu.

Those who believe in cryptocurrencies should have higher allocations to the assets than to other crypto-based investment vehicles, he said.

"I prefer direct exposure to the assets themselves and not indirectly through owning ETFs. But if I were to go with one, it would be BLOK," Saporu said, referencing Amplify's Transformational Data Sharing ETF.

"It has some of the companies that I really like as far as their top holdings, whether it's Square, PayPal or MicroStrategy, which is directly tied to bitcoin itself, so that's what I would pick if I were going an indirect strategy route."

Blue Line Capital founder and President Bill Baruch has had his eye on bitcoin for several weeks.

"As it started to tap out in May, I set a game plan, and my game plan was I wanted to be buying bitcoin into that previous 2017-2018 high of 20,000," he said in the same "Trading Nation" interview. "I started looking at 32,500 as the first place to be looking to buy bitcoin."

Bitcoin was up less than 1% late Tuesday to around $32,712.

But bitcoin isn't the only way to play this consistently hot space, Baruch said.

"Today, I bought ethereum," he said. "Ethereum is testing into a big level of support. What you're seeing is a spinning-top bottom that's created right now … which could lead to a bullish turnaround."

Some technicians see spinning-top patterns that occur after sizable downtrends as signs of upward moves to come.

"You also have the apex of a breakout from March [that] brings a lot of support and you have the 61.8 retracement from that high recently to the low in 2018," Baruch said, referencing a noteworthy Fibonacci level, which can be used to project future moves.

Investors who are wary of digital assets also have numerous individual stocks to consider, he said.

"I own payment companies like Square and PayPal. I own the chip companies like Nvidia. So, I think there's a lot of places to be looking and a lot of companies to be investing in to capitalize overall on this space," he said. "And I don't think it's a time to be concerned or panicked. It's a buying opportunity."

Disclosure: Baruch owns shares of Square, PayPal and Nvidia.

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