Transfer attacks generate significant interest for real-world black-box applications by crafting transferable adversarial examples through surrogate models. Whereas, existing works essentially directly optimize the single-level objective w.r.t. the surrogate model, which always leads to poor interpretability of attack mechanism and limited generalization performance over unknown victim models. In this work, we propose the \textbf{B}il\textbf{E}vel \textbf{T}ransfer \textbf{A}ttac\textbf{K} (BETAK) framework by establishing an initialization derived bilevel optimization paradigm, which explicitly reformulates the nested constraint relationship between the Upper-Level (UL) pseudo-victim attacker and the Lower-Level (LL) surrogate attacker. Algorithmically, we introduce the Hyper Gradient Response (HGR) estimation as an effective feedback for the transferability over pseudo-victim attackers, and propose the Dynamic Sequence Truncation (DST) technique to dynamically adjust the back-propagation path for HGR and reduce computational overhead simultaneously. Meanwhile, we conduct detailed algorithmic analysis and provide convergence guarantee to support non-convexity of the LL surrogate attacker. Extensive evaluations demonstrate substantial improvement of BETAK (e.g., $\mathbf{53.41}$\% increase of attack success rates against IncRes-v$2_{ens}$) against different victims and defense methods in targeted and untargeted attack scenarios. The source code is available at https://github.com/callous-youth/BETAK.