Bitcoin surged toward $78,000 on Wednesday, triggering over $418 million in leveraged trading liquidations within 24 hours. The move, which saw $254 million from short positions, fueled gains for altcoins like Pudgy Penguins‘ PENGU and Cosmos. Sentiment has flipped bullish, with users on prediction market Myriad assigning a 75% chance that Bitcoin’s next major push reaches $84,000.
Bitcoin’s steady April uptrend has allowed altcoins to extend their gains. Pudgy Penguins meme coin PENGU led the charge, rising 12.6% on the day, while Cosmos, Aptos, and Bitcoin Cash each gained over 5%.
The altcoin surge comes as Bitcoin hovers around $78,000. Analysts suggest that if bullish momentum persists, the leading cryptocurrency could revisit $80,000 for the first time in over two and a half months.
Wenny Cai, founder of Anchored Finance, stated, “What we’re seeing right now is a mix of both early rotation and mechanically driven upside.” She added that the velocity of the move suggests short covering and leverage are amplifying it.
According to CoinGlass data, nearly $418 million in leveraged positions were liquidated. More than $286 million of that total came from short sellers caught off guard by the price increase.
Investor optimism is growing, as shown on prediction market Myriad. Users there now see a 75% chance Bitcoin pushes to $84,000, up from roughly 45% at the start of April.
From a technical standpoint, $83,000 is identified as a key resistance level. That figure represents the average cost basis for Bitcoin exchange-traded product investors.
Orkun Kılıç, co-founder and CEO of Chainway Labs, explained the level’s significance. “The $83,000 benchmark matters because it’s where a large cohort of spot ETP buyers are sitting at breakeven,” he said.
However, the bullish outlook remains uncertain until Bitcoin overcomes key hurdles. The next major technical level is $87,000, which is the 200-day simple moving average.
Altcoins could become fragile if Bitcoin fails to overcome the ETP cost basis. “Most of this rally is predicated on Bitcoin stability, not necessarily Bitcoin strength,” Cai noted.
A rejection at resistance would likely tighten liquidity conditions across the market. Higher-beta altcoins would feel that pressure disproportionately, according to analysts.
Despite the altcoin gains, investors remain skeptical about a broader rally. Users on Myriad see just a 22% chance that an “altseason” begins before July.
