FX.co ★ Bitcoin analysis for 13/06/2018

The Financial Conduct Authority of the United Kingdom (FCA) wrote to the presidents of banks about the potential risks they face in the case of cryptocurrencies. It calls for greater oversight of client activities if they are considered to be dealing with what the agency calls "crypto assets".

For bank customers who offer services to consumers in cryptocurrencies, the appropriate steps to reduce the risk of financial crimes include "conducting due diligence on key people in the client's business" and "ensuring that the existing framework for financial crime adequately reflects activities related to cryptography in which the company is involved. "

While the FCA acknowledged that not all companies and individuals trading or having cryptocurrencies will be at risk to the same extent, the Authority listed several "high risk" indicators. These are situations when the client uses the state cryptocurrency, "which is designed to avoid international financial sanctions" - presumably an indication that trading in a Venezuela token Petro will close the account. Another situation involves retail customers sending large sums to sell tokens or initial monetary offers. According to the FCA letter, these clients create an increased risk of investment fraud.

FCA goes on to say that not all motives for using cryptocurrencies are criminal in nature, but given the potential anonymity and the possibility of transferring money between countries, the office expects financial companies to be particularly cautious in cases related to cryptocurrencies.

Let's now take a look at the Bitcoin technical picture at the H4 time frame. Overnight the internal support at $6,588 had been violated and the market has hit the impulsive scenario invalidation level at $6,402. So far there are no clues from the price action whether the bulls are willing to push the price away from this level. The next important support is seen at the level of $5,790. Please notice the increase in the downward momentum during the recent move down. This kind of market behavior indicates a further weakness and lower prices soon.