Bitcoin’s price is currently oscillating near $64,500, a key resistance level that has proven difficult to surpass. For over six months, a descending resistance line has been capping Bitcoin’s upward momentum, and it still remains just under the $68,000 mark. This area represents a crucial zone that Bitcoin needs to overcome to signal a more sustainable bullish trend on the larger time frames.

Despite the lack of confirmation of a bullish bias, Bitcoin is showing both encouraging and concerning signals on the charts. On a smaller time frame, traditional bearish divergences are evident, indicating that the market might still face downward pressure. However, the absence of the hidden bearish divergence on the daily chart has provided a glimmer of hope for optimistic traders. The larger question remains: can Bitcoin surpass the $64,500 mark and regain upward momentum?

DXY Weakness: A Positive Signal?

The U.S. Dollar Index (DXY) plays a pivotal role in determining Bitcoin’s short-term price movements. A bearish move in the DXY is often seen as a bullish sign for Bitcoin, as a weakening dollar typically leads to an influx of capital into alternative assets like cryptocurrency. Recently, the DXY witnessed a brief breakdown, giving Bitcoin a bullish push. However, the dollar quickly bounced back, neutralizing the immediate bullish signal for Bitcoin.

Analyst Josh from Crypto World notes that while the DXY’s recent movements have not been entirely favorable, the overall trend for Bitcoin remains bullish in the short term. The weakening U.S. dollar has injected some optimism into the crypto market, but the real test lies in Bitcoin’s ability to close above the $64,500 resistance.

Key Resistance Levels: What’s Next for Bitcoin?

Bitcoin is currently facing significant rejections from the $64,000 to $64,500 range. While the price has seen slight gains, including higher daily candle closes, it has yet to confirm a breakout above this level. A daily candle close above $64,500 is crucial for a stronger bullish confirmation. Traders are also watching closely for a potential retest of this level as support, which would provide an additional layer of validation for the next leg up.

If Bitcoin manages to break past the $64,500 mark, the next key resistance level lies between $67,000 and $68,000. This zone is critical due to the presence of previous support and resistance levels, as well as substantial trading volume, which could either help Bitcoin accelerate past this zone or halt its progress.

Should Bitcoin manage to close above $68,000, it would represent a strong bullish signal, possibly triggering a renewed bull market for both the short and long term. Traders are watching this level closely, as it could set the stage for Bitcoin to retest previous all-time highs and even push toward new ones.

Downside Liquidity Build-up: A Concern for Bears

While the bulls are keen on pushing Bitcoin higher, there’s a buildup of liquidity on the downside, which could pose challenges. If Bitcoin fails to break above $64,500, there’s a risk that the price could face a sharp pullback. A drop below $60,000 could open the door for further bearish pressure, with the next major support level sitting around $55,000.

Bitcoin’s current consolidation phase is typical in markets that are gearing up for a big move. This sideways movement allows both buyers and sellers to prepare for the next major trend. For now, the market appears to be coiling up, but a significant move in either direction could happen soon.

Short-Term vs Long-Term Outlook: Diverging Paths?

From a short-term perspective, Bitcoin’s prospects appear positive, thanks in part to the weakening DXY and the possibility of a breakout above $64,500. However, the longer-term outlook hinges on whether Bitcoin can break through the $68,000 level, as failure to do so would likely result in further consolidation or even a bearish reversal.

Technical analysts are also paying close attention to the broader macroeconomic factors that could impact Bitcoin’s price. Inflation concerns, interest rate decisions, and general market sentiment toward risk assets could either support or hinder Bitcoin’s ability to stage a larger rally.

Bitcoin’s ability to attract liquidity, break through key resistance levels, and capitalize on macroeconomic factors will determine whether it can regain its bullish momentum or if it will continue to face headwinds.

Conclusion: Can Bitcoin Break Out?

Bitcoin is at a critical inflection point, with its price hovering just below $64,500. While the short-term outlook is relatively optimistic, driven in part by a weakening DXY and positive technical signs, Bitcoin still needs to confirm a breakout. Traders are keeping a close watch on the $64,500 and $68,000 resistance levels, as breaking these would likely ignite a stronger rally.

For now, Bitcoin remains in consolidation, and whether it moves higher or faces further rejection will depend on its ability to surpass these key levels. Investors should be prepared for increased volatility in the coming days, as the market waits for Bitcoin to make its next big move.