Bitcoin extended its rebound this week, climbing to its highest level in more than a month as improving risk sentiment and easing expectations of an immediate Federal Reserve rate hike supported demand for risk assets.

The recovery has also been helped by renewed institutional interest, with steady ETF inflows and a weaker US Dollar encouraging investors to rebuild long positions after weeks of consolidation.

But the next move may be far more difficult.

After reclaiming the mid-$60,000 area, Bitcoin is now approaching $68,000, a key technical and psychological resistance that could determine whether the latest rally has further room to run.

Market participants note that many short-term holders accumulated positions around this level. A break above it could trigger fresh momentum buying, while failure to clear resistance may encourage another round of profit-taking.

The broader macro backdrop remains supportive but uncertain.

Cooling US inflation has reduced expectations of an immediate Fed rate hike, helping improve appetite for cryptocurrencies and other growth assets. However, rising oil prices and geopolitical tensions in the Middle East continue to cloud the inflation outlook, leaving investors cautious ahead of the Fed's July policy meeting.

Any shift in interest-rate expectations could quickly influence both the US Dollar and Bitcoin.

From a technical perspective, Bitcoin's near-term trend remains constructive.

The recent rebound has pushed the price back above key short-term moving averages, while momentum indicators continue to improve, suggesting buyers remain in control.

A decisive break above $68,000 would strengthen the bullish outlook and could open the door toward the $70,000-$72,000 region.

On the downside, initial support is seen around $64,000, followed by the $62,000 area, where buying interest previously emerged.

For now, Bitcoin's recovery remains intact.

Whether the rally develops into a broader breakout will likely depend on whether bulls can overcome the $68,000 resistance while navigating a market still shaped by Fed policy expectations and geopolitical uncertainty.