Bitcoin Bitcoin price climbed above $79,000 on Wednesday, hitting its highest level since early February as a long-awaited breakout attempt gathered momentum.
The largest cryptocurrency is up 4.5% in the past 24 hours, ahead of major altcoins Ethereum (ETH), BNB Solana (SOL) and XRP are higher. The broad market CoinDesk 20 index rose 3.5%.
Cryptocurrency-related stocks also rose. Strategy (MSTR), the largest corporate holder of BTC, is up 10%, stablecoin issuer Circle Internet (CRCL) is up 9%, and cryptocurrency exchange Coinbase (COIN) is up 6%. Bitcoin miners MARA Holdings (MARA) and Riot Platform (RIOT) rose 6%-7%.
The broader macro backdrop also turned favorable. The S&P 500 Index rose 0.9% and the Nasdaq Index rose 1.3%, reaching a record high, and the risk environment further expanded.
This comes after U.S. President Donald Trump said late Tuesday that he would extend a ceasefire in Iran while maintaining a naval blockade of the Strait of Hormuz. Still, uncertainty about peace talks remains.
Paul Howard, senior director at Wincent, said: “BTC’s near-term direction remains highly dependent on macro and geopolitical developments.” He pointed to $72,000 as a key support level, and the upside may be limited to around $80,000 as traders take profits.
Bitcoin Short Squeeze Potential
While macro risks remain, derivatives positions could push stocks higher.
Vetle Lunde, head of research at K33 Research, noted that perpetual swap traders remain heavily bearish, with seven-day funding rates near three-year lows. Meanwhile, open interest continues to move higher, suggesting new leverage is entering the market.
“Rising leverage and severely negative funding suggest that perpetual operators are steadily increasing their short positions, increasing the likelihood and potential size of a short squeeze,” he wrote.
Lund added: “We continue to see strong breakout potential in Bitcoin, with concentrated shorts providing ample fuel for Bitcoin’s rise.”
However, the $80,000 area carries additional weight for Bitcoin. It is aligned with short-term holder price realizations – a measure of the average cost basis of new market participants, who tend to be more sensitive to volatility and more likely to sell on strength.
Currently, Bitcoin is testing this barrier. A clear break above this level could signal greater confidence in a rebound, but failure to hold could trigger fresh selling pressure and profit-taking by short-term holders.