Bitcoin, with the symbol BTC, reached a 12-week high of $79,399 before encountering a strong selling wall, prompting a reversal during morning hours in Asia on Monday. This development occurred after the asset had been poised for a potential surge to $80,000, a level not seen since January.

On Monday morning, Bitcoin was valued at $77,705, representing a 0.4% decline over the previous 24 hours. The cryptocurrency had initially climbed to $79,399 around 09:00 IST before experiencing a sharp downturn. Other digital currencies also experienced a decline, with Ether dropping 2.4% to $2,329, Solana falling 1.9% to $86, and BNB decreasing 1.2% to $630.

The upward momentum that propelled Bitcoin to its highest level since January 31 dissipated by mid-morning in Singapore. The initial surge was triggered 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 delayed 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 its own record. Brent crude initially gained 2.5% but later pared its gains to 1% at $106.50 per barrel.

Bitcoin initially followed the risk-on trend but then diverged. The rejection at $79,399 can be attributed to a clean technical explanation. According to Rachael Lucas, an analyst at BTC Markets, the $80,000 mark is where many recent buyers are approaching breakeven, which historically leads to selling pressure as traders exit positions that were previously underwater.

Bitcoin has experienced a 16% increase in April, putting it on track for its first double-digit monthly gain since May 2025. Strategy has purchased $3.9 billion worth of Bitcoin this month, marking the largest monthly accumulation in a year, as reported by 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 the spot price can hold above the $79,000 level, which has now been rejected three times. This week, the Federal Reserve and European Central Bank are set to make policy decisions, and the four largest U.S. companies by market cap will release their earnings. Either the Fed's decision or a single earnings beat could provide the necessary catalyst for Bitcoin, which has been missing a spark.

Without such a catalyst, the third rejection from $79,000 in eight sessions may define the range rather than precede a breakout.