Bitcoin advanced to an 11-week high on Wednesday, moving above $79,000 as momentum behind a long-awaited breakout attempt accelerated, with analysts pointing to growing short-squeeze conditions.
Bitcoin BTC gained about 4.5% over the past 24 hours, leading a broader move higher across major tokens including Ethereum ETH, BNB, Solana, and XRP. The CoinDesk 20 Index rose 3.5%, reflecting strength across the wider crypto market.
Crypto-related equities also posted solid gains. Strategy Inc., the largest publicly traded holder of bitcoin, climbed 10%, while Circle Internet Financial rose 9% and Coinbase Global Inc. added 6%. Bitcoin miners MARA Holdings and Riot Platforms gained between 6% and 7%.
The broader market backdrop also turned favorable. The S&P 500 rose 0.9%, while the Nasdaq Composite advanced 1.3% to new record highs, reinforcing a risk-on tone.
The rally followed remarks 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. However, uncertainty surrounding the durability of the ceasefire continues to linger.
“Bitcoin’s short-term direction remains closely tied to macro and geopolitical developments,” said Paul Howard, senior director at Wincent. He highlighted $72,000 as a key support level and suggested that gains could face resistance near $80,000 as traders take profits.
Despite lingering macro risks, derivatives positioning may provide further upside. 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, open interest continues to rise, suggesting fresh leverage is entering the market. This combination signals that short positions are building, increasing both the likelihood and potential intensity of a short squeeze if prices continue higher.
“We continue to see strong breakout potential for bitcoin, with concentrated shorts providing fuel for further upside,” Lunde said.
The $80,000 level remains a key test. It aligns with the short-term holder realized price, a metric reflecting the average cost basis of newer market participants who are typically more sensitive to volatility and more likely to sell into strength.
For now, bitcoin is probing that level. A decisive break above it could confirm stronger conviction behind the rally, while failure to hold may trigger renewed selling pressure and profit-taking from short-term holders.
