The price of Bitcoin rose to $59,000.

According to CoinGecko, the price of Bitcoin (BTC) rose to $59,313 after the publication of the Bureau of Labor Statistics (BLS). US Consumer Price Index (CPI) inflation data for June Thursday.

Traders fronted the report as it was one of the fundamentals they had been watching in anticipation of Bitcoin's recovery, favoring volatility.

US CPI inflation fell to 3 percent

In June, US inflation, as measured by the CPI change, fell to 3% year-over-year. This figure is below market expectations of 3.1 percent. It was also lower than the 3.3% recorded in May, which was a 0.1% decrease from the previous month.

This follows Federal Reserve (Fed) Chairman Jerome Powell's semi-annual monetary policy report on Tuesday. Powell, who testified before the US Congress, said the Fed was not ready to cut interest rates yet. He cited mainly policymakers' lack of confidence that inflation is moving towards the 2 percent target in a sustainable manner.

The effect of the decrease in inflation on the crypto market is positive. In general, riskier assets like cryptocurrencies react aggressively when the US CPI shows below-expected or lower inflation.

Today's lower-than-expected CPI reading indicates a more significant slowdown in inflation. This could strengthen the market's hopes of a rate cut in September. Fed funds futures are currently placed at 70%, adding liquidity and risk appetite to both equities and cryptocurrencies,” Bitfinex Head of Distribution Jag Conner told BeCrypto.

Read more: How to protect yourself from inflation using cryptocurrency

Amidst the clamor, traders must hunt for volatility. After two meetings this week, investors will closely monitor Fed communications and market reaction to today's CPI release.

“We believe that an inflation rate will not reverse the inflation rate for Bitcoin, which will take some time for the market to fully value,” Conner added.

The day after the CPI data, analysts at Crypto Banter shared bullish targets, with founder Ran Nehner expecting a move to $60,000.

Bitcoin price outlook after US CPI

BTC is trading on a high bias, holding above the uptrend on the weekly schedule. Amid euphoria following US CPI data, momentum is picking up as the Relative Strength Index (RSI) tilts northward.

Based on the volume profile, the spikes in the bullish nodes (orange) indicate a bullish or bullish trend in traders buying BTC at current prices. This combined with the Moving Average Convergence Divergence (MACD) position in positive territory increases the chances of a reversal.

An increase in buying pressure above current levels could help Bitcoin price regain the $60,000 threshold. Most interestingly, the gains can be extended to test the supply zone between $66,504 and $71,151 for BTC. A stable close above this order block warrants further upside, paving the way for a new all-time high.

Read more: How to buy Bitcoin (BTC) and everything you need to know

Conversely, the MACD's position below the signal line indicates potential momentum in BTC's price action. Bias towards the southern boundary, a break and close below the uptrend line on the weekly timeframe could see BTC offer another buying opportunity in the demand zone between $43,964 and $40,013.