Bitcoin (BTC) investor sentiment hits a seven-month high, forecasting a rally to $115,000

Wednesday's CPI print and the chance for a lower-than-expected PPI on Thursday could drive BTC price higher.

Bitcoin price briefly rallied above $110,000 on Wednesday after US Consumer Price Index (CPI) data came in cooler than expected at 2.4% year-over-year (YoY) for August. Core CPI also beat estimates at 2.8%.

The US Dollar Index (DXY) plummeted to 98.5, a multi-month low, as markets quickly adjusted to Federal Reserve interest rate expectations. However, the odds of a Federal Reserve interest rate cut next week remain low as headline CPI is rising again for the first time since January.

The overall market sentiment around Bitcoin is bullish, and a cooler CPI print could potentially push prices to new highs above $115,000 this week.

Further price rallies might occur on Thursday, after the US Producer Price Index (PPI) data is released. The PPI is expected to rise by 0.2% month-over-month (Mom), with the core PPI at 0.3%.

A lower-than-expected print could amplify Bitcoin’s rally by reinforcing dovish Fed expectations over the second half of 2025. A higher-than-expected PPI or a surprise macroeconomic development could lead to pullbacks.

Bitcoin is closing in on a new high, buoyed by renewed optimism over a US-China trade deal announced by US President Donald Trump.

The agreement, which is expected to reduce macroeconomic threats that dragged BTC prices to a year-to-date low of $74,500 in April, is being described as “done” pending final approval. This deal has sparked a risk-on mood, with BTC consolidating at pivotal levels around $108,000 to $110,000.

According to data analytics platform Santiment, BTC's bullish sentiment reached a seven-month high.

Positive social media comments, tracked across X and Reddit, have doubled negative ones since Trump's election win in November.

Lower funding rate at all-time high price range

The bullish sentiment is also evident in BTC's low funding rate at an all-time high price range, signaling reduced pressure for a downward correction.

Crypto Trader Jacob Canfield stated, "Bitcoin is forming a bullish pennant on the 1-hour chart, signaling potential continuation of the bullish trend. RSI is resetting at 50, indicating a healthy cooldown within a higher consolidation range."

Immediate resistance awaits at $110,000, but a liquidity sweep around $108,000 could occur first, clearing late long orders and absorbing sell-side liquidity to fuel further upside.

The pennant's measured move projects a bullish target of $115,000, aligning with the upper trendline extension.

Additional price support lies at $106,748, with a break below risking a drop to $104,900. A swift recovery from this drop could enhance BTC's upside potential. BTC must maintain a bullish close on the higher time chart for optimal performance.