With the price of Bitcoin continuing to climb steadily higher, cryptocurrency stocks remain in high demand. Here are three top crypto stocks showing high relative strength to the Nasdaq and setting up for potential buy entry now.
As the price of Bitcoin and other leading cryptocurrencies continually zoom to new highs, it’s understandable for stock traders and investors to feel they’ve “missed out.”
Indeed, the opportunity to profit from the bull run in Bitcoin and altcoins has been immense.
If you’re not yet trading cryptocurrencies, but would like to profit from its bull run, cryptocurrency stocks offer indirect exposure to the crypto boom.
Most cryptocurrency stocks have already had an incredible run, but the recent price and volume action on the daily charts indicate there may still be more gas left in the tank.
Continue reading to discover three of the best cryptocurrency stocks that could be setting up to explode higher within the next few weeks.
Look for opportunities to profit in the three stocks below from entries on strength or weakness, depending on your personal style of trading.
Marathon Digital ($MARA)
Cryptocurrency miner Marathon Digital ($MARA) carries an IBD relative strength rating of 99 and has an “A+” Accumulation/Distribution Rating.
Marathon has already formed a month-long base above its rising 50-day moving average, with the price action reversing higher after recently touching the 50-day MA (bullish sign).
We like $MARA’s recent break of its daily downtrend line, followed by a higher low above the rising 20-day exponential moving average.
Volume during the selloff was also lighter than average, which is another bullish signal:
Like its competitor Riot Blockchain ($RIOT), Marathon is quite liquid and a fast mover.
$MARA trades its entire float every three days and is quite volatile.
As such, consider reducing your share size if trading this stock.
Silvergate Capital ($SI)
Silvergate Capital ($SI) is a high-growth, $5.6 billion asset bank that specializes in serving cryptocurrency clients.
$SI carries a 99 relative strength rating from IBD, as well as a “B” Accumulation/Distribution rating.
Silvergate has also been building a base of support for the past month, while bouncing off support of its rising 50-day moving average.
On the daily chart below, note the similar price action to $MARA (break of the downtrend line and tight price action above the rising 20-day EMA):
The volume pattern, one of our most important indicators, is also positive.
Two bigger than average red volume spikes occurred in weeks where the price action closed well off the lows of the week, a bullish sign of support.
Silvergate is also a fast mover and trades its float in 13 sessions.
Canaan ($CAN) is a dominant Chinese manufacturer of specialized hardware for cryptocurrency mining.
Of these three cryptocurrency stocks, Canaan ($CAN) is the only one that has already broken out of a base and is in trend mode.
The 10, 20, and 50-day moving averages are all trending higher, with the 20-day EMA extended above its 50-day MA.
Like $MARA, its IBD RS rating is 99 and Accumulation/Distribution rating is “A+.”
On the chart below, notice the bullish price and volume action, with volume drying up during each pullback/consolidation:
$CAN is currently digesting its last move up, and could be in play on a break above the short-term downtrend line.
Alternatively, it could be entered on a pullback that tests the 20-day EMA–but only if a bullish reversal candle confirms the pullback.
Canaan’s turnover averages 18 million shares per day, and it trades its float every seven sessions.
Like $MARA and $SI, $CAN is also quite liquid and an extremely fast mover.
On the open of March 9, we bought $CAN in the Morpheus Swing Trader Chatroom, part of the new Wagner Daily PRO service.
Canaan ripped more than 30% higher that day, and as much as 80% higher two days later, before pulling back.
It only takes one call like that (even with small share size) to cover the cost of a full-year subscription. ?
More crypto stocks for your watchlist
If you’re building a new watchlist of stocks in the cryptocurrency sector, here are some other potential movers to add to your list (in alphabetical order):
Although the Nasdaq and S&P 500 are still on shaky ground with a “Sell” signal in our market timing system, leading cryptocurrency stocks may continue to offer profitable trading opportunities with lower correlation to the direction of the broad market.
Nevertheless, keep your risk in check by reducing share size if trading the explosive cryptocurrency sector.
Want to learn to trade cryptocurrencies?
Morpheus Trading Group has been providing the top growth stock picks and quality trader education since 2002.
Soon, we will also be expanding our service to also include cryptocurrency swing trade picks and education.
The same proven technical analysis strategies we’ve relied on for profiting from stock and ETF trading works equally well for trading crypto.
Personally trading cryptocurrencies since 2014, Morpheus founder Deron Wagner is now ready to share his extensive crypto insight and experience with the awesome, enthusiastic members of Morpheus Trading Group.
When ready for launch, our new cryptocurrency service will have limited access and be available on a first come, first served basis.
Reserve your spot on the waiting list by sending your request to [email protected].