Bitcoin\u2019s (BTC) bounce brought attention back to crypto penny stocks. Even stocks without news are moving with sector momentum.\u00a0 But the bounce may not last long\u2026 Bitcoin\u2019s trading around resistance at $40,000. Where it goes from here could determine the direction of crypto stocks that follow the sector leader closely. If it breaks out, we could see more upside and volume in these stocks. But if it breaks down, it could mean more downside and consolidation. I\u2019ll watch and react to the market. I never try to predict it. Prepare for any scenario with a trading plan. And if your ideal setup isn\u2019t there, don\u2019t trade. Here are the top 5 crypto penny stocks to watch now... Top Crypto Penny Stocks to Watch First, here are the top OTC crypto stocks I\u2019m watching this week\u2026 And here are a few listed stocks I\u2019m keeping tabs on... Keep in mind that some crypto penny stocks only run when big tokens like BTC make new highs or recover from a big price dip. Note that this list is only a watchlist. These are in no way a recommendation to buy or trade. Always do your own research. And only trade a stock if you have a plan and it fits your setup. Crypto Penny Stock #1: Axis Technologies Group, Inc. (OTCPK: AXTG) AXTG is a shell company that recently announced it\u2019s entering the crypto space through two acquisitions. On July 27 the company announced it acquired TiENCHAT, a digital currency payment platform. And T8 Exchange, a cryptocurrency exchange platform. Read the full press release here. The stock soared after the news. I missed the initial spike and bought it on a dip. I bought 15,000 shares at $0.142 and sold at 15 cents for a small gain of $120.* Crypto acquisition news is spiking OTCs lately. But those spikes don\u2019t always last. AXTG traded lower for two days after the news. I\u2019ll watch it for a potential bounce, ideally with another catalyst. Crypto Penny Stock #2: KYN Capital Group, Inc. (OTCPK: KYNC) KYNC is a holding company for crypto and blockchain payments. Its payment gateway, Koinfold, allows businesses to accept cryptocurrency for online payments. The stock was on last week\u2019s watchlist for a morning panic dip buy. But instead, the stock broke out and continued higher. The higher it goes, the more potential it has for a big panic when it eventually fails. It\u2019s still on watch for a morning panic dip-buy opportunity. Crypto Penny Stock #3: ISW Holdings Inc. (OTCPK: ISWH) ISWH is a brand management company focused on crypto mining, renewable energy, and adult beverage companies. On July 27 the company announced it signed \u201ca cryptocurrency mining hosting agreement (the \u2018Agreement\u2019) with Bitmain Technologies (\u2018Bitmain\u2019), the world\u2019s leading producer of cryptocurrency mining hardware and a leading global cryptocurrency mining firm.\u201d The press release also states: \u201cFurther details related to this Agreement will be discussed in the near future.\u201d And on July 28 the company announced receipt of $8 million in financing from RB Capital Partners to \u201cdevelop its cryptocurrency mining and telehealth operations.\u201d Read that press release here. The stock\u2019s uptrending and the company could release more news in the future. But I hate to chase. I\u2019ll watch for a panic dip-buy opportunity. Crypto Penny Stock #4: BIGG Digital Assets Inc. (OTCQX: BBKCF) BIGG Digital Assets is a Canadian crypto company. It develops blockchain technology and brokerage and exchange software. It\u2019s another stock that returns to the watchlist from last week. I said, \u201cIf it can stay above $1 it could have more potential upside.\u201d It held the $1 level and bounced. And on July 29 it had a multi-day breakout above $1.25. (Past performance isn\u2019t indicative of future returns.)\u00a0\u00a0 It\u2019s not trading as much volume as I\u2019d like. A news catalyst would be ideal to push it higher. But if the sector leader bitcoin (BTC) continues higher, this stock could ride the hype with it. Crypto Penny Stock #5: DigiMax Global Inc. (OTCPK: DBKSF) DBKSF is another Canadian crypto company. It provides artificial intelligence (AI) and crypto solutions to various industries in Canada. On July 28, the company announced it signed a collaboration agreement to expand into Hong Kong. The next day, the company announced it signed another agreement with a Korean company. The stock moved higher on the news but it trades low volume for me. I\u2019ll watch for another news catalyst to potentially bring in more volume. See the Stocks I\u2019m Watching I want to help you as much as possible, which is why I offer a NO-COST watchlist. Will you find crypto penny stocks on my list? That depends. I go where the hottest market action is. Subscribe to my weekly watchlist to see what makes the cut. I round up my top watches every week and send them to you. Use these stocks to study the trading patterns, catalysts, and price action. Then build a trading plan of your own. Know that I\u2019m not recommending you to trade the stocks on my watchlist. There\u2019s no guarantee I\u2019ll trade any of these stocks. I\u2019m simply WATCHING them for potential future setups. Never blindly follow alerts or hot picks. Ever. Do your own research. Your goal is to eventually become confident in your own trading plan. Conclusion When you\u2019re looking for hot crypto penny stocks, keep in mind\u2026 These stocks tend to move together on sector momentum. Don\u2019t jump into these stocks before the markets give you a reason. And keep your goals reasonable. Don\u2019t go swinging for the fences. Aim for singles. Watch for major news in the cryptocurrency industry. These stocks probably won\u2019t run without a catalyst. Learn to be patient and wait for your best setups to come to you. That\u2019s what I teach in my Trading Challenge. If you want to become a self-sufficient trader, apply today. What\u2019s your take on crypto penny stocks? I\u2019d love to read about it in the comments! Disclaimers *Please note that reported trading results are not typical. Most traders lose money. It takes years of dedication, hard work, and discipline to learn how to trade. Individual results will vary. Trading is inherently risky. Before making any trades, remember to do your due diligence and never risk more than you can afford to lose.\u00a0 **Tim Sykes has a minority ownership stake in StockstoTrade.com.