Bitcoin Breaks Above Zombie Zone, But Can It Hold at $65,000?

Bitcoin broke through its $63,000 'zombie zone' and surged past $64,000 on August 17 after traders reduced their expectations for a Federal Reserve rate hike in September and the US dollar weakened.

The move was also fueled by lower exchange inflows, cooler leverage, and decreased selling pressure. However, CryptoQuant's volatility-adjusted momentum fell below zero, indicating weak returns relative to recent price movements, while Coinbase Premium remains negative, suggesting soft US spot demand.

With $65,000 now the key test, a clean break above this level could extend the move towards the upper part of the recent range. However, if renewed US spot demand fails to materialize, the breakout may remain fragile and driven by lighter selling and short covering.