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Well, bitcoin may be on people’s radars again, after the wild moves it’s experienced.

Traders are chasing alpha, and I wouldn’t be surprised if some will look to the cryptocurrency market to make money.

I mean this could be a start to a run similar to the one we saw just a few years ago.

Who knows.

Of course, cryptocurrencies can be pretty risk… but I know how these momentum traders think, after all, I’ve been doing it for about a decade now.

If these cryptocurrencies do start to take off, I believe we’ll start to see a slew of sympathy plays.

No, I’m not talking about the dumb alternative coins that don’t have use cases…

I’m talking about stocks with exposure to cryptocurrencies.

There are two bitcoin-related stocks right now I want to keep on my radar right now.

Why?

My patterns flashed a potential buy signal, and typically, when I see these setups develop, I can find quick 10-20% winners.

 

These Two Cryptocurrency Stocks Are Looking Hot

 

The two stocks are Marathon Patent Group (MARA) and Riot Blockchain (RIOT). Listen, I’m not going to randomly buy these stocks.

I’m going to wait for key levels and for my patterns to develop in these names.

Right now MARA is showing signs of one of my best setups — the rest and retest.

 

 

On the daily chart, MARA pulled right into a key Fibonacci retracement level. I want to focus on the 50% and 61.8% retracement levels because I’ve found those areas work really well for identifying entry points.

 

 

I want to keep an eye around the $2.75 – $3.35 area for potential areas. If the demand actually picks up, I really wouldn’t be surprised if MARA gets to its recent high at $5. Above that, and I think the move can really get sporty.

Why?

This stock is considered a low-float. It’s only got 18.01M shares floating and an 8.09% short interest. That’s an indication there’s not a lot of supply out there… and if we do see bitcoin skyrocket, that would be a catalyst that can send MARA higher.

Next up, there’s Riot Blockchain (RIOT).

The company just released earnings and pulled back. I think any “bad news” is priced in right now, and the chart pattern is almost “picture-perfect”.

I mean take a look right here.

 

 

RIOT pulled right into the 61.8% retracement level and started to make a move. I’m going to keep an eye on the 50% and 61.8% retracement levels as potential entry spots.

This is one stock I actually mentioned not too long ago, before it made that large move above $4.

You see, there are only 32.88M shares floating, and nearly 20% of those shares are short. Again, if the demand picks up, RIOT can see some pretty wild moves.

I’m going to keep an eye on these two names because these patterns typically play out and help me identify momentum stocks BEFORE they move.

If you want to make trading easier and just look at chart patterns to identify hot trade ideas, then make sure to attend this exclusive training session.

Author:
Jason Bond

Jason taught himself to trade while working as a full-time gym teacher; his trading profits grew eventually allowed him to free himself of over $250,000 in student loans!

Now a multimillionaire and a highly skilled trader and trading coach, Over 30,000 people credit Jason with teaching them how to trade and find profitable trades. Jason specializes in both swing trades and in selling options using spread trades, which balance the risk of selling options. Jason is Co-Founder of RagingBull.com and the RagingBull.com Foundation which donates trading profits to charity. So far the foundation donated over $600,000 to charity.

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1 Comments

  1. Hi Jason – Hope your weekend is at its best. I’m enduring the heat here in Phoenix. Believe me. It’s not pretty. Sometimes it worth it to make the 145 mile drive up north to Flagstaff, or Sedona. I’m a new trader as of January, small account ($8k now, was $10k at the start). I’m a new self-taught trader as of January 2020. I’ve been following you for a short time now. Thanks for all your advise. I think I got in the market at a bad time (Covid-19), lost 1/2 my account in March, which hurt. I got in due to losing my job due to virus, and it’s bad here in Az.. I managed to re-coup my losses by the end of June. Took time off, hit the west coast for two weeks in July. I enjoyed reading your story of how you made your trading a success. Kudos! Although I’m self-taught and tend to trade in all sectors, but not normally crypto or blockchain, so I was happy and surprised to see that the only to blockchain stocks I picked in June were RIOT and MARA. I’ve been washing and rinsing these 2 for a short while now. It gave me comfort knowing that these were your two favorite blockchain pics. I have 1000 shares right now. Hopped in again on Friday. I’m glad I spent the $249 get in on Kyle’s 5 Fast Trades. I happy to be a part as of last night. Thanks to you both. I look forward to both your advise. Salute!!

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