Bitcoin's price soared by 7.50% to $66,350 following the release of the latest U.S. inflation data, signaling cooling inflation and bolstering expectations for a potential interest rate cut by the Federal Reserve.

The U.S. consumer price index (CPI) rose by 0.3% in April, down from 0.4% in the previous months, suggesting a resumption of the downward trend in inflation. This lower-than-expected increase is seen as positive for the economy, aligning with data showing flat retail sales in April and indicating a slowdown in domestic demand.

Key drivers of inflation included a 0.4% increase in shelter costs and a 2.8% jump in gasoline prices, which together accounted for over 70% of the CPI increase. However, food prices remained unchanged, with notable decreases in supermarket prices for items like eggs.

Federal Reserve Chair Jerome Powell expects inflation to continue moving downward towards the Fed’s 2% target, prompting financial markets to anticipate a roughly 73% probability of a rate cut in September. This dovish stance by the Fed has weakened the dollar and fueled a rally in Bitcoin prices as investors seek alternative assets amidst changing monetary policies.

Currently trading at $66,350, Bitcoin's price rally is supported by a bullish breakout from a symmetrical triangle pattern around the $63,300 level. While caution is warranted due to recent candlestick formations suggesting market indecision, the overall outlook remains bullish above the $65,150 pivot point.

Immediate resistance levels for Bitcoin are at $67,300, $68,545, and $70,000, with crucial support at $65,150 and $63,300. The 50-day Exponential Moving Average (EMA) at $62,565 reinforces the bullish trend, indicating potential further upside if Bitcoin sustains its upward trajectory.

In conclusion, Bitcoin's surge amidst lower-than-expected inflation data underscores its role as a hedge against traditional currency fluctuations and inflationary pressures. While near-term volatility may persist, the overall sentiment remains optimistic for Bitcoin investors.