Bitcoin analysis 10/09/2018

The American Subcommittee on Congress on Terrorism and Illegal Finance discussed various methods of financing terrorism through cryptocurrencies, according to the official press release of the US House of Representatives on Financial Services of September 7.

In order to monitor the threats and methods of financing terrorism, the main ways of transferring funds by terrorists, including traditional financial institutions and semi-formal methods such as the hawala exchange system and cryptocurrencies, were considered during the discussion.

However, while Al-Qaeda, the Islamic State and other terrorist groups tried to raise funds through cryptocurrencies, they did not achieve great success, as Congress said during the meeting.

Yaya Fanusie, Director of Analysis of the Foundation for the Defense of Democracy (FDD) Center for Sanctions and Illegal Finance, stressed that the majority of terrorists, especially those who serve on "battlefields of jihad", now live in environments where cryptography does not work, which means that the use of cryptocurrency ls is better when you buy goods.

Fanusie indicated cash money as the most anonymous method of financing, claiming that it is more popular among terrorists. He also stated that crypto is a "poor form of money for jihadists" and "cold hard cash is still king. The expert also stated that the US government bodies that are responsible for investigating terrorist financing should acquire more skills in analyzing cryptocurrency transactions. Fanusie noted: "Preparing now for the increasing use of cryptocurrencies by terrorists, the US may limit the possibility of transforming digital currency markets into a reserve of illegal financing".

At this point, Fanus seemed to instruct the authorities to focus on smaller cryptocurrency exchanges that trade alternative cryptocurrencies or personal tokens, instead of on major stock exchanges, which significantly tightened the anti-money laundering (AML) and know-your-customer (KYC) policies in over the past few years.

Let's now take a look at the BItcoin technical picture at the H4 time frame. The market remains in a local downtrend and a new local low was made overnight at the level of $6,083. The price bounced from this level, but it was capped by the internal trendline resistance around the level of $6,371 with a high at the level of $6,400. Currently, the market is trading inside of a local consolidation zone, but still under the black trend line. The good news for bulls is, that there is a bullish divergence building between the price and the momentum oscillator.

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