Last week ended with a bit of a surprise…
After a three-week beat down, Bitcoin (BTC) bounced back with a vengeance.
It was up over 11% at one point. Ethereum (ETH) followed suit and was up over 5%.
With volatility jumping back into the space, traders in the SteadyTrade Team were looking at crypto stock plays on Friday…
Heck, even Oracle had a few on her list. So today I’ll share my plan for these stocks this week.
Because as we know, they can have crazy moves depending on the sector leader. And I want to help you avoid getting caught in a selloff from bagholders in these stocks…
Crypto Stocks to Watch
All the stocks in this sector move closely together. And they all follow the sector leader, Bitcoin (BTC).
So if you want to trade any of these stocks — watch them all and keep your eyes on Bitcoin. It can change directions quickly…
Here are just a few that were on Oracle’s watchlist on Friday. We’ll see if they can continue their momentum this week…
- Marathon Digital Holdings, Inc. (NASDAQ: MARA) climbed on Thursday. It had a morning dip and rip and an afternoon VWAP hold, high-of-day break that afternoon. On Friday it gapped up and consolidated along VWAP. It was the same kind of price action we saw in PIXY on Thursday before it broke out in the afternoon. But MARA didn’t break the high of the day, so I’ll watch for that move today.
- Riot Blockchain, Inc. (NASDAQ: RIOT) and MARA have similar moves. So like MARA, RIOT started moving on Thursday. Then it gapped up Friday and trended sideways. But unlike MARA, RIOT did break the daily highs in the afternoon.
- Hut 8 Mining Corp. (NASDAQ: HUT) trades at around $2.30 per share. So it’s a cheaper option compared to RIOT and MARA which trade around $8 and $14 per share respectively. Like RIOT, HUT broke its daily high on Friday. And it had a big bounce off VWAP.
The Patterns to Watch For
All these stocks have massive floats. So they won’t move quickly or necessarily have big gains. They can also be very choppy…
That’s why I refuse to trade these in the morning and get bagged.
So for me, all the crypto stocks are a watch for afternoon VWAP hold, high-of-day breaks only.
Case in point — RIOT and HUT both chopped around on Friday morning before breaking the day’s high in the afternoon.
But if you’re not as jaded and spiteful as I am, and you have a plan — then all our usual patterns apply…
If you want to trade them in the morning, I think the best setup is a dip and bounce off the previous day’s close. A lot of these sketchy stocks like to pull back at the open, that’s why I prefer to wait for the afternoon.
And it’s important to stick to your risk and get out if you’re wrong. These stocks are full of bagholders so they could experience a lot of selling pressure.
If you want a better way to ride Bitcoin’s momentum, consider learning how to trade the coins themselves.
Learning about opportunities in crypto was one of my goals this year…
And if you’re going to learn something new, why not learn from someone with experience and success in the space?
See you there!
Have a great Money Monday, everyone. See you all back here tomorrow.
Lead Trainer, StocksToTrade