Bitcoin shows potential for a rally toward $115,000, driven by favorable U.S. economic indicators and strong technical signals, with investor optimism reaching its highest level in seven months.
Technical analysis reveals a bullish pennant formation supporting the $115,000 target, reinforced by cooling U.S. inflation data. The latest Consumer Price Index (CPI) recorded a 2.4% year-over-year increase, slightly below the 2.5% forecast.
Market sentiment has surged dramatically, with bullish social media commentary now doubling bearish perspectives. This shift underscores growing confidence among investors amid Bitcoin’s consolidation near $110,000.
The upcoming U.S. Producer Price Index (PPI) release stands as a critical catalyst, where lower-than-expected data could accelerate Bitcoin’s upward trajectory. Additionally, optimism around potential U.S.-China trade agreements has bolstered risk appetite across markets.
Notably, the rally appears primarily spot-driven, with flat funding rates reducing risks of leveraged sell-offs. Trader Jacob Canfield highlighted this dynamic as a stabilizing factor for market structure.