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The Bitcoin Trade To Make Before An All-Time Breakout

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Written by Timothy Sykes Reviewed by Jack Kellogg Fact-checked by Ellis Hobbs
Updated 5/8/2025 5 min read
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Bitcoin is still an enigma for some people.

And yet, in May this year, the crypto asset is again reaching toward all-time highs.

As a result, the most popular crypto questions have resumed circling:

  • Is crypto the money of the future?
  • Should I be investing in crypto?
  • What if the price crashes again?

Let me set your mind at ease.

First of all, the recent Bitcoin spike is attributed to the U.S.’s trade deal with the U.K., announced on May 8.

The Trump administration’s global tariffs have hit the entire market.

Initially, Bitcoin rose as a result of the tariffs, similar to gold, as investors moved toward less America-focused assets.

But the Bitcoin response to the recent trade deal shows just how permeating these tariffs were in the market. Even Bitcoin is rising at the prospect of more stability.

The all-time highs for Bitcoin are at $109,590. The $100k price level acts as the current breakout resistance.

On the Bitcoin chart below I added some key catalysts to help illustrate our current position.

Every candle represents one day:

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

There is an opportunity to make gains from this crypto momentum.

And we don’t have to buy any Bitcoin …

The Crypto Trades Setting Up NOW

There are a lot of ways to play this momentum.

That’s a benefit for us as traders.

When there are so many different profit angles, it’s a sign that there’s a lot of money moving in the industry. We can snag some of that money for ourselves.

There are a few larger stocks trading higher thanks to the Bitcoin momentum:

  • Robinhood Markets Inc. (NASDAQ: HOOD) spiked 19% this week.
    • Robinhood is a popular broker among first-time traders. The platform started to offer crypto trading in 2018.
  • Coinbase Global Inc. (NASDAQ: COIN) spiked 8% this week.
    • Coinbase is one of the leading crypto brokers in the industry.

As Bitcoin pushes higher, we could see more bullish momentum from these stocks.

There are also penny stocks capitalizing on this momentum. These are the stocks that I like to trade:

  • Asset Entities Inc. (NASDAQ: ASST) spiked 1,200%* this week.
    • The company announced a merger on May 7, to result in an asset-management Bitcoin company.

I focus on the market’s biggest percent gainers because there’s more wiggle room to make gains.

On a 1,200%* stock spike, like ASST, I can pull 10% or 20% with less risk than if I traded HOOD, which only spiked 19% this week.

Look at the ASST chart below for an example of this volatility. Every chart represents one trading minute:

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

Huge Trade Opportunities

These crazy stock spikes have a name.

They’re called supernovas. And ASST wasn’t the first supernova this year …

  • MLGO spiked 1,100%* to end March.
  • JNVR spiked 1,800%* in April.
  • AREB spiked 1,300%* in April.
  • UPXI spiked 860%* on April 21.
  • SBEV spiked 1,200%* in April.
  • KIDZ spiked 820%* in May.

We can trade this volatility for gains!

These volatile stocks like to follow specific patterns in the market.

For example, look for this price action on ASST:

There will be more +100% spikers that follow my patterns.

More Breaking News

It doesn’t matter whether they’re Bitcoin related.

How To Reuse This Strategy

The beauty behind my trading process is we can apply the same patterns to the next hottest stock that’s moving with a proper catalyst.

  • This week it was ASST with Bitcoin news.
  • Last week it was KIDZ with news of a $400 million equity purchase agreement.
  • The week before that it was UPXI with news of a $100 million private placement.

There are new stocks spiking every week with catalysts to push the share price higher.

All we have to do is apply our patterns to the price action.

Volatile stocks can follow the same patterns over-and-over again because people are predictable during times of high stress.

Like when they have a few thousand dollars in a stock that’s spiking +100% intraday.

These specific patterns are reusable in the market.

Study past setups like ASST and KIDZ … and get ready for the next big runner.

Don’t miss the initial move. I’m always posting about the most recent stock spikes on X: Follow along.

Get ready for the next supernova stock spike!

Cheers.

 

*Past performance does not indicate future results

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Timothy Sykes

Tim Sykes is a penny stock trader and teacher who became a self-made millionaire by the age of 22 by trading $12,415 of bar mitzvah money. After becoming disenchanted with the hedge fund world, he established the Tim Sykes Trading Challenge to teach aspiring traders how to follow his trading strategies. He’s been featured in a variety of media outlets including CNN, Larry King, Steve Harvey, Forbes, Men’s Journal, and more. He’s also an active philanthropist and environmental activist, a co-founder of Karmagawa, and has donated millions of dollars to charity.
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* 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”

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