Bitcoin analysis for 09/09/2018

The agent of the US Drugs Agency (DEA) noted that the role of Bitcoin in crimes dropped to only 10 percent of transactions, while the number of transactions themselves increased dramatically - criminal activity using cryptocurrencies has fallen by 80 percent since 2013.

In the interview for one of the financial television, Special Agent DEA Lilita Infante - who is a member of the 10-member Cybercriminal Taskforce - said that the ratio of legal to illegal Bitcoin transactions in the last five years has turned: "The volume increased enormously, the number of transactions and the value of the dollar increased tremendously in the last years of criminal activity, but the ratio decreased".

The concept of criminals using cryptocurrencies as an alternative to cash has traditionally been the main argument used by those critical of the future of Bitcoin. Regulators also addressed the perception of using cryptocurrencies for illegal purposes, often related to terrorism and money laundering.

As the popularity of Bitcoin increased, the overwhelming majority of activity began to constitute a legal trade. Infante notes that most transactions are used for price speculation. She added that although focused on the privacy of altcoins are less fluid and more anonymous than Bitcoin, DEA still has ways to track currencies such as Monero and Zcash.

At the US House of Representatives' public meeting on digital resources in mid-July, Andreessen Horowitz, managing partner of Scott Kupor, suggested that Bitcoin is the best friend of law enforcement agencies because of the ability to track illegal transactions on Blockchain.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market has plummeted to the level of $6,087, which is just above the technical support at the level of $6,034. Then the price bounced to $6,344 where the nearest technical resistance is, but the bearish pressure is still present on market. In a case of a further decrease, the next target level for bears is seen at $5,728.

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