Bitcoin climbed to its highest level in 11 weeks on Wednesday, pushing above $79,000 as momentum behind a long-anticipated breakout strengthened, with analysts pointing to mounting short-squeeze potential.

Bitcoin BTC rose roughly 4.5% over the past 24 hours, leading advances across major altcoins including Ethereum ETH, BNB, Solana, and XRP. The broader CoinDesk 20 Index gained 3.5%, signaling widespread strength across digital assets.

Crypto-linked equities also followed higher. Strategy Inc., the largest corporate holder of bitcoin, surged 10%, while Circle Internet Financial advanced 9% and Coinbase Global Inc. rose 6%. Bitcoin mining firms MARA Holdings and Riot Platforms added between 6% and 7%.

The macro backdrop also turned supportive. The S&P 500 climbed 0.9%, while the Nasdaq Composite gained 1.3% to fresh record highs, extending the broader risk-on environment.

The move came after 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. Despite this, uncertainty around a lasting resolution continues to weigh on sentiment.

“Bitcoin’s near-term trajectory remains closely tied to macro and geopolitical developments,” said Paul Howard, senior director at Wincent. He pointed to $72,000 as a key support level, while suggesting that upside could face resistance near the $80,000 mark as traders take profits.

Even so, derivatives market positioning may provide additional upside fuel. 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 new leverage is entering the market. This combination indicates that short positions are building, increasing both the probability and potential scale 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 remains a critical hurdle. It aligns with the short-term holder realized price—a measure of the average cost basis for newer investors, who tend to be more sensitive to volatility and more likely to sell into strength.

For now, bitcoin is testing that zone. A sustained 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.