Bitcoin climbed to its highest level in 11 weeks on Wednesday, pushing above $79,000 as momentum behind a long-anticipated breakout attempt strengthened, with analysts pointing to building short-squeeze pressure.
Bitcoin BTC gained roughly 4.5% over the past 24 hours, outperforming major altcoins such as Ethereum ETH, BNB, Solana, and XRP. The broader CoinDesk 20 Index rose 3.5%, signaling broad-based strength across digital assets.
Crypto-linked equities also advanced. Strategy Inc., the largest publicly traded holder of bitcoin, jumped 10%. Circle Internet Financial gained 9%, while Coinbase Global Inc. added 6%. Bitcoin miners MARA Holdings and Riot Platforms rose between 6% and 7%.
The macro backdrop also turned supportive. The S&P 500 climbed 0.9%, and the Nasdaq Composite advanced 1.3% to fresh record highs, extending a broader risk-on environment.
Markets were buoyed in part by comments from Donald Trump, who said late Tuesday that the Iran ceasefire would be extended, even as a naval blockade of the Strait of Hormuz remains in place. Still, uncertainty around a lasting resolution continues to cloud the outlook.
“Bitcoin’s near-term trajectory remains closely tied to macro and geopolitical developments,” said Paul Howard, senior director at Wincent. He highlighted $72,000 as a key support level, while noting that upside could face resistance near the $80,000 area as traders take profits.
Despite lingering risks, derivatives market positioning may provide additional fuel for the rally. Vetle Lunde, head of research at K33 Research, noted that perpetual futures funding rates remain deeply negative, hovering near three-year lows—an indication of strong bearish positioning.
At the same time, rising open interest suggests fresh leverage is entering the market. This combination points to a buildup of short positions, increasing both the probability and potential magnitude of a short squeeze if prices continue higher.
“We continue to see solid breakout potential for bitcoin, with a concentration of shorts acting as fuel for further upside,” Lunde said.
The $80,000 level now stands as a key hurdle. It coincides with the short-term holder realized price, a metric representing the average cost basis of newer investors who tend to be more reactive to volatility and more likely to sell into strength.
For now, bitcoin is testing that level. A sustained move above it could confirm stronger conviction behind the rally, while failure to hold may invite renewed selling pressure and profit-taking from short-term holders.
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