Great indicators for crypto penny stocks this week — increased volume and momentum.
There’s plenty of news in the sector lately — proposed crypto regulations, bitcoin’s break back above $40,000, and moves in higher-priced stocks like Bit Digital, Inc. (NASDAQ: BTBT).
And China’s bitcoin mining crackdown has made it easier and more cost-efficient for companies to mine for bitcoin and other coins. That could be a boon for U.S. bitcoin miners.
But today’s crypto penny stocks are also moving on other news — earnings, expansions, and bitcoin production updates. One company even claims to have AI technology that can predict crypto price movements.
Will you believe the hype? Or stay disciplined and trade like a sniper? Your choice…
Here are my top 5 crypto penny stocks to watch now.
Top Crypto Penny Stocks to Watch
First, here are the top OTC crypto stocks I’m watching this week…
And here are a few listed stocks I’m 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:Vortex Brands Co. (OTCPK: VTXB)
VTXB’s company description on OTC markets says it will purchase and maintain computers to engage in bitcoin mining.
It plans to use bitcoin mining revenue to develop its Phase Angle Synchronization (PAS) equipment — a technology that will address inefficient power consumption and extend the life of power grids.
Sounds counterproductive since mining bitcoin uses a ton of power. But that’s not the big news…
The stock spiked on high volume on August 4 after the company filed updated quarterly and annual reports on the OTC markets website.
It’s a sub-penny stock, so not my favorite to trade. But updated filings are a catalyst that’s working in OTCs right now. It’s on watch for more news and high volume.
Crypto Penny Stock #2: Bitfarms Ltd. (NASDAQ: BITF)
This crypto mining company owns and operates mining farms.
BITF released second-quarter financials and provided a bitcoin production update on August 5.
The stock broke out over $5 and left penny stock territory after the news. It has a history of spiking so I’ll watch it for a big move with high volume.
Crypto Penny Stock #3: HIVE Blockchain Technologies Ltd. (NASDAQ: HVBT)
HIVE Blockchain is another cryptocurrency mining company. It mines for ethereum and bitcoin.
The company announced it purchased 4,000 bitcoin miners and reached a $200 million annual run rate on July 30.
And on August 5 the company was granted a management cease trade order by the British Columbia Securities Commission. The order prevents management from trading the stock while they complete annual filings. HVBT announced its annual filings would be late on July 29.
Despite the mixed news, the stock moved higher over the last week. I’ll watch it for a breakout over $3.30 with high volume.
Crypto Penny Stock #4: Hut 8 Mining Corp. (NASDAQ: HUT)
HUT’s an industrial-scale bitcoin mining company.
The company released its production update on August 4…
“Based on current mining conditions and installed hash rate, Hut 8 projects to mine approximately 910 Bitcoin in the third quarter of 2021, which would bring the Company’s self-mined Bitcoin balance to approximately 4,733 as of September 30, 2021.”
Read the full press release here.
The stock trades higher volume since it started trading on the Nasdaq in June. It’s in a small uptrend and close to a multi-month breakout level.
I’ll watch it for a breakout over $5.60. Ideally with another catalyst and high volume.
Crypto Penny Stock #5: DigiMax Global Inc. (OTCPK: DBKSF)
DBKSF is a Canadian crypto company. It provides artificial intelligence (AI) and crypto solutions to various industries in Canada.
It returns to the watchlist from last week. It was moving on news of collaboration agreements to expand into Hong Kong and Korea. I was watching for another news catalyst and higher volume…
On August 3 the company announced its stock is now available on the Canadian trading app, Wealthsimple. It also reported that its AI price prediction tool, CryptoHawk, “provided subscribers returns of +44.9% for Bitcoin and +22.1% for Ethereum” over June and July.
Read the full press release here.
On August 5 the stock traded higher volume but it’s consolidating. I’ll watch for more upside momentum and a breakout over 20 cents.
See the Stocks I’m 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’m not recommending you to trade the stocks on my watchlist. There’s no guarantee I’ll trade any of these stocks. I’m 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’re looking for hot crypto penny stocks, keep in mind…
These stocks tend to move together on sector momentum. Don’t jump into these stocks before the markets give you a reason.
And keep your goals reasonable. Don’t go swinging for the fences. Aim for singles.
Watch for major news in the cryptocurrency industry. These stocks probably won’t run without a catalyst.
Learn to be patient and wait for your best setups to come to you. That’s what I teach in my Trading Challenge. If you want to become a self-sufficient trader, apply today.
What’s your take on crypto penny stocks? I’d 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.
**Tim Sykes has a minority ownership stake in StockstoTrade.com.
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