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Key takeaways:
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Bitcoin investor sentiment hits a 7-month excessive, with a bullish pennant forecasting a rally to $115,000.
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At present’s CPI print and the possibility for a lower-than-expected PPI on June 12 may drive BTC worth larger.
Bitcoin (BTC) worth briefly rallied above $110,000 on Wednesday after US Client Value 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.
Nevertheless, the chances 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 2025.
The general market sentiment round Bitcoin is bullish, and a cooler CPI print may probably push costs to new highs above $115,000 this week. A worth rally may happen on June 12, after the US Producer Value Index (PPI) knowledge is launched. The US PPI is predicted to rise by 0.2% month-over-month, with the core PPI at 0.3%.
A lower-than-expected print may amplify Bitcoin’s rally by reinforcing dovish Fed expectations over the second half of 2025. The next-than-expected PPI or a shock macroeconomic growth may 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 predicted to scale 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 “achieved” pending closing approval, has sparked a risk-on temper, with BTC consolidating below $110,000.
Related: ‘Unique’ Bitcoin holder trend backs BTC’s next price discovery phase: Glassnode
Bitcoin sentiment hits 7-month excessive
In keeping 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 also be mirrored in BTC’s low funding price at an all-time excessive worth vary. Crypto Dealer Jacob Canfield stated,
“I actually do not bear in mind a time the place I’ve seen costs going up this a lot and funding charges being fully flat. This normally implies that the underlying rallies are largely spot pushed. Unsure how we’ll see huge promote offs with out excessive leverage out there. Most definitely this implies larger.”
From a technical standpoint, Bitcoin is forming a bullish pennant on the 1-hour chart, signaling potential bullish continuation. The relative power index (RSI) is resetting close to the 50 degree, indicating a wholesome cooldown inside a better consolidation vary. Instant resistance lies at $110,000, however a liquidity sweep round $108,000 may 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. Extra worth help lies at $106,748, with a break under risking a drop to $104,900. A swift restoration from this drop may 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 comprise funding recommendation or suggestions. Each funding and buying and selling transfer entails danger, and readers ought to conduct their very own analysis when making a choice.