Bitcoin bulls are back in the saddle, and the latest U.S. inflation data is the fuel for their fire. The cryptocurrency surged over 7.5% to a sizzling $66,350 after the release, signaling a potential turning point in the market.

Inflation Eases, Rate Cuts on the Horizon

The magic ingredient? A cooling down of inflation. April's CPI data came in lower than expected, showing a 0.3% rise compared to the previous months. This signals a potential downward trend, music to the ears of both the Federal Reserve and investors.

Lower inflation increases the chances of a rate cut by the Fed, a move that has historically been bullish for Bitcoin. Financial markets are now buzzing with a 73% probability of a cut in September, up from a pre-data 69%.

Dollar Weakens, Bitcoin Strengthens

The expectation of a rate cut has a domino effect. The dollar weakens when borrowing costs are expected to decrease, and as the greenback dips, Bitcoin soars. Investors seeking alternative assets in a changing monetary landscape see Bitcoin as a haven.

Technical Analysis: Bullish Breakout, But Caution Ahead

The charts are flashing bullish signals, with Bitcoin breaking out of a symmetrical triangle pattern. However, a closer look reveals some potential hiccups. Recent Doji and spinning top formations hint at market indecision, and an overheated RSI suggests a possible bearish correction could be lurking.

Key Levels to Watch: Support and Resistance

For the bulls, the key is to hold the $65,150 pivot point as critical support. Above that, resistance levels lie at $67,300, $68,545, and the coveted $70,000 mark. On the downside, immediate support sits at $63,300, with further support levels acting as a safety net.

The Verdict: Bullish, But Buckle Up

The overall outlook for Bitcoin remains optimistic, as long as it stays above the $65,150 pivot point. However, investors should be prepared for some turbulence. A break below this level could trigger a sharp sell-off, so keeping a close eye on technical indicators and key support levels is crucial. Buckle up, Bitcoin believers, the ride could get bumpy before the bull market truly charges ahead.