Bitcoin climbed above $79,000 on Wednesday, hitting its strongest level since early February as a long-awaited breakout attempt gained momentum.
The largest crypto rose 4.5% in the last 24 hours, leading major altcoins ether (ETH), BNB Solana (SOL) and XRP higher. The broad CoinDesk 20 index rose 3.5%.
Crypto-related stocks also rose. Strategy ( MSTR ), the largest corporate BTC holder, rose 10%, while stablecoin issuer Circle Internet ( CRCL ) rose 9% and crypto exchange Coinbase ( COIN ) rose 6%. Bitcoin miners MARA Holdings (MARA) and Riot Platforms (RIOT) added 6%-7%.
The broader macro backdrop also became supportive. The S&P 500 rose 0.9% and the Nasdaq added 1.3% to record highs, extending the risk-on environment.
The advance followed US President Donald Trump’s remarks late Tuesday that he would extend the Iran ceasefire while maintaining a naval blockade of the Strait of Hormuz. Nevertheless, there is still uncertainty surrounding peace negotiations.
“BTC’s near-term direction remains highly dependent on macro and geopolitical developments,” said Paul Howard, a senior director at Wincent. He pointed to $72,000 as key support, with upside potentially capped near $80,000 as traders take profits.
Bitcoin short squeeze potential
While macro risks are still in place, derivatives positioning could fuel the rally.
Perpetual swap traders remain heavily skewed bearish, with seven-day funding rates at nearly three-year lows, noted Vetle Lunde, head of research at K33 Research. At the same time, open interest continues to trend higher, suggesting that new leverage is entering the market.
“Rising leverage alongside deeply negative funding suggests shorts are steadily developing in perps, increasing both the likelihood and potential size of a short squeeze,” he wrote.
“We continue to see strong breakout potential for BTC, with concentrated shorts providing ample fuel for a rally,” Lunde added.
However, the $80,000 area has additional weight for bitcoin. That’s consistent with the short-term holder realized price—a measure of the average cost basis for newer market participants, who tend to be more sensitive to volatility and more likely to sell on strength.
For now, BTC is testing that hurdle. A clean move above it could signal stronger conviction behind the rally, but failure to hold could invite renewed selling pressure and profit-taking from short-term holders.
