Netanyahu currently has no clear path to 61 seats. If he adds Jewish Home (right wing on the Palestinian issue but militantly secular) to his coalition, he loses the religious parties who refuse to sit with Jewish Home.
On the other hand, Blue & White has absolutely no path to a majority-- the total for the Jewish center and left parties is only about 45 seats. The Arab parties (who won about 12 seats) will try to block Netanyahu from forming a government, but will never sit in a government with any Jewish parties, and most of Blue & White would absolutely refuse to sit with the Arabs.
There are only three alternatives now-- (1) a coalition between Blue & White and Likud, leaving out the religious parties (Blue & White has so far refused this, but could change their minds); (2) Netanyahu keeps his current coalition with the religious parties and ekes out a bare 61-seat majority by pulling in some individual members of Blue & White by offering them plum cabinet seats; and (3) a third election (unlikely, since 2 elections in a row have produced only deadlocks).
Minority government with Liberman, with Arab party agreement not to take down the government. Real possibility.