Please see my previous blog post if you haven't as it is the foundation for this one.

I recently posted a blog about how $MGTI and $GBTC were moving in perfect sympathy with the bitcoin chart and how to easily profit from spikes after afterhours surges in bitcoin prices.  Unfortunately, the recent charts for both of those stocks have stayed relatively flat during the recent uptrend in bitcoin, and the time of easy perfect sympathy plays has ended (for now at least).

My new strategy is to find the best bitcoin play based on momentum, and support/resistance when bitcoin is spiking.  You basically need to find the bitcoin ticker that traders seem to be favoring the most.  This time it was $BTCS. 

My recent trade on $BTCS was a result of recognizing a that $BTCS had the largest initial spike, and began consolidation above a key level of 0.13 as the bitcoin chart made a run towards $6000.  Once I saw the consolidation, I went long at 0.1312 for a test of resistance at $0.16 (kind of an ABCD pattern).  It ended up spiking to around 0.23, which I never would have expected, but I have no regrets playing it safe and sticking to my plan.

If history is any indicator, once bitcoin reaches whole number resistance of $6000, it will be advantage shorts until the next bounce.  Based on how consistent the bitcoin chart is, it looks like the next bounce will happen after a dip to $4500.  As I write this, bitcoin is pulling back, so it doesn't look good for follow through tomorrow.  But, it's just my opinion, and I hope this helps!