Bitcoin, which is currently trading at $76,636.04, reached a 12-week high of $79,399 before encountering a seller wall during Asian morning hours on Monday, thereby halting its rally towards the $80,000 mark for the first time since January. The cryptocurrency experienced a 0.4% decline over 24 hours, falling to $77,705 on Monday morning after briefly reaching $79,399 around 09:00 IST, only to reverse its gains throughout the Asia session. Other major cryptocurrencies also saw declines, with Ether dropping 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 was short-lived, unwinding by mid-morning Singapore time.

The recent surge was attributed to a report from Axios stating 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. This development triggered a risk-on move in Asian equities, 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.

However, bitcoin's attempt to join this rally was brief, as it eventually peeled away. According to Rachael Lucas, an analyst at BTC Markets, the rejection at $79,399 can be explained technically, as $80,000 is a level where many recent buyers are approaching breakeven, historically leading to selling pressure as traders exit positions they were underwater on for weeks.

Despite this, bitcoin is still up 16% in April, on track for its first double-digit monthly gain since May 2025. Strategy has bought $3.9 billion worth of 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, indicating that shorts are still paying longs to hold positions. This setup could lead to a squeeze if the spot price can hold above the $79,000 level, which has now been rejected three times. With the Federal Reserve and European Central Bank set to announce policy decisions this week, and megacap tech earnings on the horizon, the market is awaiting a potential catalyst for bitcoin's next move. Either a favorable decision from the Fed or a strong earnings report could provide the necessary spark for bitcoin to break out of its current range.