Key takeaways:
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Bitcoin investor sentiment hits a seven-month excessive, with a bullish pennant forecasting a rally to $115,000.
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Wednesday’s CPI print and the prospect for a lower-than-expected PPI on Thursday might drive BTC worth larger.
Bitcoin (BTC) worth briefly rallied above $110,000 on Wednesday after US Shopper Worth Index (CPI) knowledge got here in cooler than anticipated at 2.4% year-over-year (forecast: 2.5%). Core CPI additionally beat estimates at 2.8% (forecast: 2.9%). The US Greenback Index (DXY) plummeted to 98.5, a multimonth low, with markets swiftly adjusting to the Federal Reserve’s rate of interest expectations.
Nonetheless, the percentages of a Federal Reserve rate of interest minimize subsequent week stay low as headline CPI is rising once more for the primary time since January.
The general market sentiment round Bitcoin is bullish, and a cooler CPI print might doubtlessly push costs to new highs above $115,000 this week. A worth rally may happen on Thursday, after the US Producer Worth Index (PPI) knowledge is launched. The PPI is anticipated to rise by 0.2% month-over-month, with the core PPI at 0.3%.
A lower-than-expected print might amplify Bitcoin’s rally by reinforcing dovish Fed expectations over the second half of 2025. A better-than-expected PPI or a shock macroeconomic growth might result in pullbacks.
Cointelegraph additionally reported that Bitcoin is closing in on a brand new excessive, buoyed by renewed optimism over a US-China commerce deal introduced by US President Donald Trump.
The settlement is anticipated to cut back macroeconomic threats that dragged BTC costs to a year-to-date low of $74,500 in April after Trump’s tariff bulletins. This deal, described as “finished” pending closing approval, has sparked a risk-on temper, with BTC consolidating beneath $110,000.
Related: ‘Unique’ Bitcoin holder trend backs BTC’s next price discovery phase: Glassnode
Bitcoin sentiment hits 7-month excessive
In line with knowledge analytics platform Santiment, BTC’s bullish sentiment reached a seven-month excessive, as optimistic social media feedback, tracked throughout X and Reddit, have doubled unfavorable ones since Trump’s election win in November 2024.
The bullish sentiment can be mirrored in BTC’s low funding charge at an all-time excessive worth vary. Crypto Dealer Jacob Canfield stated,
“I truthfully do not bear in mind a time the place I’ve seen costs going up this a lot and funding charges being utterly flat. This often implies that the underlying rallies are largely spot pushed. Undecided how we’ll see massive promote offs with out excessive leverage out there. Probably this implies larger.”
From a technical standpoint, Bitcoin is forming a bullish pennant on the 1-hour chart, signaling potential bullish continuation. The relative energy index (RSI) is resetting close to the 50 degree, indicating a wholesome cooldown inside the next consolidation vary. Fast resistance lies at $110,000, however a liquidity sweep round $108,000 might happen first, clearing late lengthy orders and absorbing sell-side liquidity to gas additional upside.
The pennant’s measured transfer initiatives a bullish goal of $115,000, aligning with the higher trendline extension. Further worth help lies at $106,748, with a break beneath risking a drop to $104,900. A swift restoration from this drop might improve BTC’s upside potential, however BTC should keep a bullish shut on the upper time chart.
Related: New Bitcoin treasuries may crack under price pressure
This text doesn’t include funding recommendation or suggestions. Each funding and buying and selling transfer includes threat, and readers ought to conduct their very own analysis when making a choice.
