Bitcoin Breaks Out of the $63,000 Zombie Zone, But Will It Hold?

Bitcoin broke above $63,000 on Monday and quickly pushed past $64,000, escaping the narrow range that had trapped the price for days.

The biggest catalyst came from the US macro picture. Traders have sharply reduced their expectations for a Federal Reserve rate hike in September, while the dollar has weakened. Both developments make risk assets such as Bitcoin more attractive.

Can Bitcoin Price Breakout of $65,000 Resistance?

The move also gained momentum as selling pressure eased. Bitcoin inflows to exchanges have dropped sharply, while funding rates and open interest have cooled. That means fewer coins are sitting on exchanges ready to sell, while leveraged traders are less aggressively positioned.

However, the broader picture remains less convincing.

CryptoQuant's volatility-adjusted momentum has fallen below zero, suggesting Bitcoin is generating weak returns relative to its recent volatility. Its risk oscillator has also returned to a level that previously appeared near major market turning points.

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