Cryptocurrencies enter bear market

The last 2 weeks have been pretty tough on bitcoin as a strict crackdown on cryptocurrency transactions occurred in the largest cryptocurrency mining country, China and maybe signs of further regulation or crackdowns to occur. Cryptocurrencies did not have the best start to May with certain strong short term volatility from reactions such as Elon Musk's Twitter posts with concerns about energy consumption on some cryptocurrencies in reference to their mining. After supporting Dogecoin's efforts and a lot of anticipation with what he may tweet or say in the public spotlight (including the SNL appearance) the technical analysis on charts did not reveal much in the way of possible direction or identifying supply zones or resistance vs support (as does the news releases itself being very speculative).

(Photo by André François McKenzie/Unsplash)

There has been a common theme of weekend profit taking or sell-offs as well during US hours, this has been no different in the current bear market territory some of the major cryptocurrencies are currently stuck in. Will Bitcoin now go into a sideways movement for consolidation before deciding its next move up or down? Currently, this isn't confirmed yet and the RSI indicator shows a heavy selling trajectory as well as MACD not crossing and being wide open on longer chart time frames but the blue line in buying may be flattening for possible sideways movement or to now change to head towards a touch or crossing for more buying action. Etherium has been looking better for a possible cross to reverse of the line curve signalling buying.

With the digital Yuan being encouraged and released in China will this spell the end of most cryptocurrencies or will it create capital shifts to more long term cryptocurrency offerings and strategies? The upcoming replies from Brad Garlinghouse (Ripple CEO) & Chris Larsen (angel investor) as well as Ripple's official responses (XRP) to the SEC's motions in the U.S.A will have a lot of influence on how cryptocurrencies will be handled in another vast and significant market of the U.S.A. itself. From May 25th to the 10th of June 2021, these will be the key dates of the case into Ripple by the SEC's investigations and definitely worth paying close attention to for any crypto investor or trader.

(Photo supplied by Wix)