Altcoin Friday!

Firstly, regarding news about prop firms, it was expected that regulations for prop firms would come sooner or later, but it was anticipated to take some time. However, today there was an intervention by Canada/US which has frozen the funds of MyForexFunds, and users no longer have access to the website, and consequently, their accounts. On September 11th, a court will begin in which MyForexFunds will defend itself.

This news underscores the importance of making a wise choice when selecting prop firms. MyForexFunds is a highly reliable entity, and if they lose the lawsuit, it could potentially harm the entire prop firm industry.

In this edition of the trade letter, I will not only focus on sharing long setups but also explore opportunities for potential shorts. Lately, we have noticed that the market has been characterized by its sharp downward movements, where the easiest gains can be found.

SUI-USDT 4-hour chart
SUI has been struggling in recent days, and we can observe a strong downtrend on the 4-hour timeframe, with supply zones consistently being respected by the price. I anticipate that this downward trend will continue toward the liquidity around $0.45. So, in the upcoming days, as long as the price doesn't establish a higher high, we can consider looking for short positions. My advice would be to seek shorts in the next upcoming supply zone, as the price is showing a good degree of respect for these supply zones.

SEI-USDT 4-hour chart

SEI also has a clear resistance zone on the chart, namely the supply zone around $0.145-0.15. I expect this supply zone to be strong and keep the price down. If this indeed occurs, you can look for long positions within the green box. Please note: only open a long position when lower timeframes provide the right confirmations. The green box has already been tested once, making it weaker, so it's unwise to place orders in it beforehand.

LINK-USDT 1-day chart
LINK has been on our list for long positions for quite some time. The reason behind this is that LINK is in a prolonged accumulation phase, and we aim to explore potential longs around the range low. On the daily timeframe, we now observe a strong bullish divergence on the RSI. This leads us to believe that the bottom might be approaching, and therefore, we may expect a bounce in the short term.

From here, two scenarios are possible:

1) In the first scenario, we wait for LINK to establish a higher high, breaking above $6.5. Subsequently, we can start looking for the higher low and plan our long positions accordingly.

2) In the second scenario, we wait for the price to sweep the low of $5.6, and then we anticipate with long positions. This is the safer scenario because a liquidity sweep removes liquidity, which can later serve as fuel for an upward movement.BTC-USDT 1-hour chart

For BTC, I'm currently looking at the following scenario. We observe that the price made a deviation above the range high and then sharply declined after falling back into the range. This is a pattern we often see when the price fails to break out of the range. Currently, the price is in the middle of the range, and there's little to anticipate. It's crucial to exercise patience until BTC moves toward the edges of the range again. Personally, I'm waiting for a deviation below the range low, and I'll open a long position when the price reclaims the range low after the deviation.