timothy sykes logo

Watchlists-Penny Stock Investment Strategy

Bitcoin Stocks

Timothy SykesAvatar
Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 12/5/2024 5 min read
Bitcoin Stocks Thumbnail

It’s Tim Sykes here.

It happened …

For the first time ever, Bitcoin (BTC) passed $100k.

See my post on X below:

Here’s a chart of Bitcoin over multiple years, every candle represents 3 days:

BTC chart multi-year, 3-day candles Source: BitcoinWisdom.io

This spike is the direct result of Trump naming crypto-friendly Paul Atkins to replace Gary Gensler as Chairman of the SEC.

I’m not trading cryptocurrencies. But luckily, this momentum is spilling into the market as a whole!

Yesterday we saw multiple Bitcoin stocks spike alongside the Bitcoin surge past $100k.

Here are the biggest names I’m watching right now:

3 Bitcoin Stocks

© Millionaire Media, LLC

This bullish Bitcoin volatility easily spills into the larger market.

  • We saw it during the 2020-2021 Bitcoin rally.
  • We saw it during the surge to new highs in early November 2024.

BTC Digital Ltd. (NASDAQ: BTCT) is a perfect example of the recent momentum among crypto stocks. The price spiked 1,300%* when Bitcoin broke to new all-time highs in November.

And the price spiked 17% yesterday when Bitcoin passed $100k.

Take a look. On the chart below every candle represents one trading day:

BTCT chart multi-month, 1-day candles Source: StocksToTrade

There’s still upward resistance from bagholders who bought on November 13 and 14 … Otherwise this spike could have reached higher.

I’m still watching BTCT because the chart shows support around $14. And we already know the stock can spike …

Plus, StocksToTrade shows that the float is only 2 million shares. Anything below 10 million shares is considered a low supply.

The low supply helps prices spike higher when demand increases.

When Bitcoin surged past $100k, we also saw Mawson Infrastructure Group Inc. (NASDAQ: MIGI) spike 110%*. Mawson is a software company that develops digital infrastructures. And it services the crypto industry.

Plus, the stock just took a nosedive after false claims that the company was going bankrupt.

Theoretically this stock could easily fill the gap to $2 from before the nosedive. Take a look at the chart below.

Every candle represents one trading minute:

MIGI chart multi-day, 1-minute candles Source: StocksToTrade

I’m also watching Bit Digital Inc. (NASDAQ: BTBT).

The stock surged during the Bitcoin spike in 2020-2021. And the chart initially spiked Thursday morning alongside Bitcoin’s push past $100k, but the price fell down since.

I’m still watching the chart because it’s testing the 1-year highs at $5.

A surge past that level could be explosive.

Take a look at the chart below:

BTBT chart multi-month, 1-day candles Source: StocksToTrade

How To Trade:

My students and I trade this volatility using popular patterns.

Below is an example of Jack Kellogg’s BTCT trades from earlier this year:

Source: Profit.ly

Understand, Jack is trading with a huge position size. But it wasn’t always like that …

Back in 2018 Jack was trading with $1,000.

That’s the beauty of this process, a trader can start with a small account and size up over time as they gain confidence.

The first thing you have to understand is: This momentum is NOT random.

Volatile stocks can follow popular patterns because people are predictable during times of high stress. Like when they’ve got shares of a stock that’s spiking +100%.

We see these patterns over-and-over again in the stock market.

Stocks follow them so closely that I was able to teach these patterns to an AI bot!

After months of prompting, the AI can call trade setups on the hottest stocks!

>> Get The Next AI Trade Alert <<

There are more profit opportunities right around the corner!

Cheers.

*Past performance does not indicate future results

How much has this post helped you?

(0 votes, average: 0 out of 5)
Leave a reply

* Results are not typical and will vary from person to person. Making money trading stocks takes time, dedication, and hard work. There are inherent risks involved with investing in the stock market, including the loss of your investment. Past performance in the market is not indicative of future results. Any investment is at your own risk. See Terms of Service here

The available research on day trading suggests that most active traders lose money. Fees and overtrading are major contributors to these losses.

A 2000 study called “Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors” evaluated 66,465 U.S. households that held stocks from 1991 to 1996. The households that traded most averaged an 11.4% annual return during a period where the overall market gained 17.9%. These lower returns were attributed to overconfidence.

A 2014 paper (revised 2019) titled “Learning Fast or Slow?” analyzed the complete transaction history of the Taiwan Stock Exchange between 1992 and 2006. It looked at the ongoing performance of day traders in this sample, and found that 97% of day traders can expect to lose money from trading, and more than 90% of all day trading volume can be traced to investors who predictably lose money. Additionally, it tied the behavior of gamblers and drivers who get more speeding tickets to overtrading, and cited studies showing that legalized gambling has an inverse effect on trading volume.

A 2019 research study (revised 2020) called “Day Trading for a Living?” observed 19,646 Brazilian futures contract traders who started day trading from 2013 to 2015, and recorded two years of their trading activity. The study authors found that 97% of traders with more than 300 days actively trading lost money, and only 1.1% earned more than the Brazilian minimum wage ($16 USD per day). They hypothesized that the greater returns shown in previous studies did not differentiate between frequent day traders and those who traded rarely, and that more frequent trading activity decreases the chance of profitability.

These studies show the wide variance of the available data on day trading profitability. One thing that seems clear from the research is that most day traders lose money .

Millionaire Media 66 W Flagler St. Ste. 900 Miami, FL 33130 United States (888) 878-3621 This is for information purposes only as Millionaire Media LLC nor Timothy Sykes is registered as a securities broker-dealer or an investment adviser. No information herein is intended as securities brokerage, investment, tax, accounting or legal advice, as an offer or solicitation of an offer to sell or buy, or as an endorsement, recommendation or sponsorship of any company, security or fund. Millionaire Media LLC and Timothy Sykes cannot and does not assess, verify or guarantee the adequacy, accuracy or completeness of any information, the suitability or profitability of any particular investment, or the potential value of any investment or informational source. The reader bears responsibility for his/her own investment research and decisions, should seek the advice of a qualified securities professional before making any investment, and investigate and fully understand any and all risks before investing. Millionaire Media LLC and Timothy Sykes in no way warrants the solvency, financial condition, or investment advisability of any of the securities mentioned in communications or websites. In addition, Millionaire Media LLC and Timothy Sykes accepts no liability whatsoever for any direct or consequential loss arising from any use of this information. This information is not intended to be used as the sole basis of any investment decision, nor should it be construed as advice designed to meet the investment needs of any particular investor. Past performance is not necessarily indicative of future returns.

Citations for Disclaimer

Barber, Brad M. and Odean, Terrance, Trading is Hazardous to Your Wealth: The Common Stock Investment Performance of Individual Investors. Available at SSRN: “Day Trading for a Living?”

Barber, Brad M. and Lee, Yi-Tsung and Liu, Yu-Jane and Odean, Terrance and Zhang, Ke, Learning Fast or Slow? (May 28, 2019). Forthcoming: Review of Asset Pricing Studies, Available at SSRN: “https://ssrn.com/abstract=2535636”

Chague, Fernando and De-Losso, Rodrigo and Giovannetti, Bruno, Day Trading for a Living? (June 11, 2020). Available at SSRN: “https://ssrn.com/abstract=3423101”