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.

US spot demand also remains soft. The Coinbase Premium Index is still negative, although the indicator may exaggerate weakness because of differences between USD and USDT pricing. Bitcoin ETFs also recorded net outflows last week.

For the next few days, $65,000 is the key level. A clean break and hold above it could extend the move toward the upper part of the recent range.

But the next few weeks will depend on whether real spot demand returns. If ETF flows improve and Coinbase demand strengthens, the breakout could develop into a broader recovery.

If those signals stay weak, the move above $63,000 may remain a relief rally driven mainly by lighter selling and short covering.

Source: BeInCrypto