Cryptocurrencies weaker before the weekend and US PCE data reading 📉

Bitcoin is still hovering around $24,000 and its volatility has been noticeably limited for several days, which historically preceding sudden price movements. Ahead of the release of US PCE inflation data (1:30 pm GMT), Wall Street indices are weakening, putting selling pressure on cryptocurrencies. Declines could accelerate if the PCE reading is flat or inflation surprises with an increase, although there is still a chance for a positive surprise. Historically, the ends of the week have often brought higher volatility through position changes by larger cryptocurrency traders adjusting positions due to lower market liquidity over the weekend.

• The latest data on cryptocurrency funding by venture capital (VC) funds in 2022, released by Blockdata, indicated that the market saw a total of $3.7 billion in VC funding in Q4 2022 (down 61% from $9.6 billion in Q4 .2021);
• Total funding received by blockchain startups and smaller cryptocurrencies fell much less, 11% y/y from $32 billion to $29 billion. At the same time, average transaction volume in 2022 increased 35% y/y (partly due to liquidity injections following the collapse of FTX);
• Despite the difficult macro environment, investors financed projects and development of Web3 blockchain-based technologies in infrastructure construction, digital identity management, payments and smart contracts, among others;
• The most - more than $1.7 billion went to the Uniswap project, among others; the most active VC was Coinbase Venures, a division of the Coinbase exchange (COIN.US, 13 funding rounds).

Uniswap, H4 interval. The cryptocurrency, unlike Bitcoin, has yet to climb sustainably above pre-FTX collapse price levels. The key resistance remains $7.7, after which, if overcome, the increases may accelerate. Support, on the other hand, is marked by the SMA200 and SMA100 (red and black lines) and the 38.2 Fibonacci retracement. The moving averages have formed a 'death cross' formation, heralding a possible weakening of sentiment. Source: xStation5

Bitcoin, H4 interval. RSI shows neutral levels indicating 'readiness' to determine further price movement. Bitcoin is at key support levels, set by local peaks from January. A drop below $23,700 could herald a test of the 23.6 Fibonacci retracement of the upward wave initiated in November, as well as the SMA 100 and SMA200 averages, which could form a 'death cross' if the price falls sharply. Source: xStation5