04.09.201807:56 Forex Analysis & Reviews: Bitcoin analysis for 04/09/2018

As reported by the financial media, the Russian Federal Financial Monitoring Service ordered an analytical tool to track cryptographic transactions, especially those in Bitcoin. By the end of 2018, a new application will be included in the organization's monitoring system, whose main target is to face fraud and prevent the financing of terrorism. It is expected that the tool will combine fragmentary information and will find connections between different cases of fraud.

The winner of the government contract for the development of such a monitoring program was the Moscow Institute for Security and Information Analyzes (SPI). SPI has previously developed iRule software, which has been widely used by themselves, as well as by Russian security forces and insurance companies, BBC reports.

According to public documents, the contract is worth 195.5 million rubles (about 2.9 million dollars) and describes technology that would allow users to track digital wallet users. The tool has the ability to find the name of a specific person, its bank account number, credit card number, mobile phone number as well as the e-wallet number. It will also contain data on cryptocurrency and Bitcoin transactions.

The Federal Financial Monitoring Service has long held a critical position towards cryptocurrencies. In a press release from 2014, the regulatory authority stated that the mere use of digital money could be the basis for considering the transaction illegal.

A former adviser to Vladimir Putin on the Internet, German Klimenko, who is known for his tough approach to blocking the Telegram application in Russia, explained to the media the government's position on the cryptocurrency:

"Due to anonymity and the inability to find sources of transactions, cryptocurrencies are used in the gray area. For example, in Darkweb, to buy weapons, drugs or violent videos. Legislators in many countries are afraid of this phenomenon, which was confirmed by the analysis we carried out on behalf of the president [Vladimir Putin] "- he says.

In May, the legislative committee of the Russian State Duma announced that in the first reading it would support an initiative that would set standards for the digital economy, specifying, inter alia, how citizens can interact with cryptography.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. The market is trading just below the technical resistance at the level of $7,300 and it looks the price is getting ready to break through it. In that case, the next target is seen at the level of $7,500 or even at $7,589 which is the weekly pivot resistance level 1. On the other hand, the nearest support can be seen at the weekly pivot at the level of $7,100 and at the level of $7,087.