Bitcoin bulls charged ahead on Wednesday, propelling the price back to the $65,000 mark. This surge followed the release of US inflation data hinting at a cooling down of price pressures. Investors are now betting on the Fed easing interest rates later this year, fueling a positive outlook for riskier assets like Bitcoin.

The king of crypto wasn't alone in its ascent. The S&P 500 mirrored Bitcoin's rise, reaching a record high. Meanwhile, the US Dollar and bond yields took a tumble, hitting their lowest point in a month.

The market's confidence in a rate cut is growing rapidly. Data suggests a 71% chance of at least one cut by September, a significant jump from just a day ago.

Bitcoin now faces a critical hurdle: its 50-day moving average (DMA) at $65,166. If it can break above this level and surpass its May highs around $65,500, further gains could be on the horizon. The next key resistance points to watch are the late-April highs near $67,000 and eventually, a retest of the yearly highs in the $73,000 territory.

But will Bitcoin manage to smash through these barriers and reclaim its yearly glory?

Recent months haven't been kind to Bitcoin. Fears of inflation earlier in 2024 forced investors to adjust their expectations for aggressive rate cuts, likely a key factor behind Bitcoin's stall after reaching record highs pre-halving. Since then, it's been stuck in a consolidation zone, hovering between $60,000 and $70,000.

The latest inflation report, while not a silver bullet, offers a glimmer of hope that the Q1 inflation surge might be temporary. If inflation concerns ease moving forward, the economic climate could become a tailwind for Bitcoin in the medium term.

However, historical trends pose a challenge. May has traditionally been a bearish month for Bitcoin, with price drops in previous years. Additionally, some analysts suggest that post-halving rallies typically take 4-6 months to materialize, pushing a significant upward movement past August.

But here's a twist: 2024 is an election year. Historically, markets tend to rally during election periods, potentially defying the usual summer slump for Bitcoin.

Long-term, the odds remain stacked in Bitcoin's favor. Potential rate cuts, the halving event, ongoing government spending, and the rising demand for spot Bitcoin ETFs could all contribute to a price surge towards $100,000 or even beyond in the next couple of years.

So, can Bitcoin break out of its multi-month range? Only time will tell, but with positive economic sentiment and a potential election boost, the bulls are lining up for a potential breakout.