Is it possible to create an item texture larger than 16 x 16 without issues in-game?

Hello, I wish you all a wonderful day and a thank you in advance. I am trying to create unique items for a world I plan to play with my friends. Simply put, it is difficult for me to create custom textures in 16 x 16, much less get the details I want.

   I am aware of how to enlarge my drawing area, but any items with texture larger than that seem to be offset from their intended position inside my character's hand. 32 x 32 appears to have the item resting on the character's shoulder, and the higher the resolution, the larger and farther away the item appears to be. Are there any fixes to this? 

   If it helps at all, the only experimental feature I have is Holiday creator Features and I am using Bridge. v2.

(This is my first post here and I wish to apologize if there are any mistakes I had made.)