What were the circumstances in late 1863 that kept the outcome of the US Civil War uncertain?

What were the circumstances in late 1863 that kept the outcome of the US Civil War uncertain?
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Despite suffering several major defeats in 1863, the Confederacystill had the ability to resist the Union's attempt to force theSouth to surrender. The Battle of Chickamagua was a Union setbackfor example and the Union's naval blockade had not yet crippled theSouth into submission. Also the conquest of Mississippi had notproduced the logistical advantages the North hoped for. Unionadvances in the West were hampered by the lack of waterways forlogistical support. In the East, Virginia, for example, Lee's Armyof Northern Virginia, remained a roadblock for the North'sambitions against Richmond.
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