Bitcoin and XRP continue to face pressure after failing to sustain gains made earlier in the week.
Rising US bond yields, oil prices surpassing US$100, and a more cautious market sentiment have weighed on risk assets, including cryptocurrencies.
For trading on Friday, October 9, the focus will shift to US consumer sentiment data and the market's reaction to developments regarding interest rates and US bond yields.
Bitcoin Faces Risk of Continued Pressure
BTCUSD chart by Saracen Markets
Bitcoin is currently trading around US$82,800 on the daily chart, having fallen from the US$86,000 zone.
The price also touched a low near US$82,180, indicating that selling pressure remains strong.
From a technical perspective, the US$82,000–US$82,500 range serves as the immediate support level. If this area fails to hold, Bitcoin could potentially test the US$80,500 level, which aligns with a key moving average on the chart.
Conversely, Bitcoin needs to reclaim the US$84,000 level to signal a recovery.
If successful, the price could test US$85,000, followed by the US$86,500 zone.
Pressure on Bitcoin also stems from US macroeconomic conditions. The 10-year bond yield remains around the 5.3% level, while Brent crude oil prices have climbed back above US$100.
A combination of high bond yields, a strong dollar, and geopolitical risks generally creates an unfavorable environment for risk assets like Bitcoin. AP News
XRP Remains Weak Below Key Resistance
XRPUSD chart by Saracen Markets
XRP is trading around US$1.40, with the daily chart showing the price continuing to move below an upward trend line currently situated near US$1.43.
The US$1.43 level serves as the immediate resistance. If XRP manages to break back above this area, the price could potentially test the US$1.45–US$1.50 range.
However, if selling pressure persists and the price breaks below US$1.38, XRP risks moving lower to test the next support zone around US$1.35.
XRP's weakness is also closely linked to Bitcoin's movements, as negative risk sentiment typically exerts greater pressure on altcoins.
US Consumer Sentiment in Focus Tomorrow
On Friday, the US market awaits the University of Michigan Preliminary Consumer Sentiment data for October, scheduled for release at 10:00 AM US time (approximately 10:00 PM Malaysian time).
The September figure stood at 48.1, while the initial forecast for October is around 47.6, indicating that consumer sentiment is expected to remain weak.
If the reading comes in lower than expected, it could heighten concerns regarding the US economy and initially put pressure on risk assets.
However, if the market views economic weakness as a reason for the Fed to adopt a looser monetary stance, the pressure on Bitcoin could ease.
Conversely, a stronger-than-expected reading could support the dollar and bond yields—as investors perceive the US economy as resilient—thereby exerting pressure on BTC and XRP.
Additionally, the results of the 30-year US Treasury bond auction on Thursday night (US time) should be monitored, as changes in bond yields can influence market sentiment in the subsequent session.
