Bitcoin, currently trading at $77,833.32, reached a 12-week high of $79,399 before encountering a strong seller wall, prompting a reversal during Monday's Asian morning session. This development has derailed the asset's potential push towards the $80,000 mark for the first time since January.

On Monday morning, Bitcoin was down 0.4% over 24 hours, trading at $77,705, after briefly touching $79,399 around 09:00 IST. Other major cryptocurrencies also experienced declines, with Ether slipping 2.4% to $2,329, Solana falling 1.9% to $86, and BNB declining 1.2% to $630. The rally that propelled Bitcoin to its highest level since January 31 lost momentum by mid-morning Singapore time.

The initial surge was sparked by a report from Axios indicating that Iran had proposed a new plan to the U.S. to reopen the Strait of Hormuz, with nuclear talks postponed until after the U.S.

naval blockade is lifted. Asian equities responded positively, with the MSCI Asia Pacific Index rising 1.7%, the emerging markets index reaching a record high, and Taiwan Semiconductor Manufacturing surging 6% to a new record.

However, Bitcoin's attempt to join the risk-on move was short-lived, as it eventually peeled away. According to Rachael Lucas, an analyst at BTC Markets, the rejection at $79,399 can be attributed to the fact that $80,000 is a critical level where many recent buyers are approaching breakeven, historically leading to selling pressure as traders rotate out of underwater positions.

Despite this, Bitcoin remains up 16% in April, poised for its first double-digit monthly gain since May 2025. Strategy has accumulated $3.9 billion in Bitcoin this month, the largest monthly accumulation in a year, according to Bloomberg. Funding rates on perpetual futures across major exchanges remain negative on a 7-day basis at -0.13% per Coinglass, indicating that shorts are still paying longs to hold positions.

This structural setup could lead to a squeeze if spot prices can hold above the $79,000 level, which has now been rejected three times. With the Federal Reserve and European Central Bank set to make policy decisions this week, and megacap tech earnings on the horizon, including the four largest U.S.

companies by market cap, either the Fed or a single earnings beat could provide the catalyst the Bitcoin market has been missing. Without such a catalyst, the third rejection from $79,000 in eight sessions may define the range rather than precede a breakout.