One of our Top 20 Blockchain Stocks is ready for a major breakout. In terms of chart structure this is a perfect bullish setup. According to us this blockchain stock will go many times higher in 2019 and beyond.
As we saw this year blockchain stocks are highly correlated to cryptocurrency prices. Admittedly, it was our belief early this year that cryptocurrency and blockchain stocks would decouple. For blockchain stocks that have crypto mining as their core activity it makes sense of course that there is a strong correlation with crypto prices. However, for a company like BTL Group or none pure play blockchain stock Overstock it does not really make sense.
Since January 2018 the crypto crash brought cryptocurrency prices and market caps down with most crypto prices down +80%. Some blockchain stocks came down with a similar percentage, several even much more, some went bankrupt or appeared to be fraud.
Moreover, as said in our article Where Are Those New Blockchain Stocks In 2018 it is clear that Bloomberg’s estimate that more than 50 blockchain stocks would come online this year is horribly wrong.
The ‘good news’ is that every correction comes with a cleanup effect. Blockchain stocks that have no value will be out of game. The ones that deliver value are now so cheap, trading at major bottoms, that they will become multi-baggers once the new crypto bull market gets traction, presumably in 2019 and 2020.
In other words this is a great time for smart investors to pick up value at significantly under priced rates.
This is the quote from InvestingHaven’s blockchain & crypto investing research last week, exclusive to their premium crypto subscribers:
We are convinced that all blockchain stocks in our top 10 selection are in a strong buy area. With crypto prices starting a recovery, and with clearly bottoming chart patterns on the blockchain stocks charts, combined with continued ‘RISK ON’ sentiment in broad markets and especially general technology stocks, it is clear that our top blockchain stocks are all in a strong buy area. Just a little bit of patience is required on blockchain stocks before going long in an aggressive way.
There is one particular blockchain stock that we like very much.
It has a very clear and outspoken, even textbook fashion, bullish chart setup: a bullish triangle. The blockchain stock, which we prefer to mention by name in order to respect premium crypto subscribers, is shown below. It is trading in Australia, is a nano cap with exploding revenues.
The reasons we get so excited about this blockchain stocks? First, it respected its long term support, and former resistance became support in a textbook fashion. Second, the correction was significant but as strong as many other blockchain stocks and crypto prices. Third, this company works together with our #2 favorite cryptocurrency. Fourth, fundamentally, this company has a great outlook, as its revenue continues to explode and business activities continue to grow!
It is no coincidence that several of our top blockchain stocks have somehow similar setups, not necessarily exactly the same triangle bullish setup but rounding bottoms. We are convinced that times will get much better, but now is the time to pick up value at discounted prices.
As the crypto market started its recovery a couple of weeks ago we know for sure that blockchain stocks will follow suit. It is a matter of time, and picking out the blockchain stocks that survived and show signs that they will thrive is what smart investors are doing. InvestingHaven helps by selecting its favorite blockchain stocks, and offering it is a starting point for crypto investors.