Bitcoin investors are experiencing a surge in optimism, driving sentiment to a seven-month high following a favorable US Consumer Price Index (CPI) report. The CPI data revealed a year-over-year increase of 2.4%—lower than the predicted 2.5%—along with core CPI also surpassing estimates. This has led to a brief rally of Bitcoin prices above $110,000. Market sentiment is focusing on an upcoming Producer Price Index (PPI) release, which, if lower than anticipated, might catalyze further price increases towards $115,000. However, concerns linger about the Federal Reserve's interest rate policies. Positive developments around a US-China trade deal have obtained bullish traction among investors, reviving interest in Bitcoin after a recent slump earlier this year. A technical analysis indicates a bullish pennant formation, suggesting potential future gains, although immediate resistance exists around $110,000. Should the market maintain this trend, Bitcoin could see continued growth, provided external economic surprises do not derail momentum.

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