Bitcoin Retreats from 12-Week Peak as Sellers Intervene at $79,400

Bitcoin, with the symbol BTC, reached a 12-week high of $79,399 before encountering a significant selling wall, prompting a reversal during Monday's Asian trading hours. This move thwarted the cryptocurrency's potential run towards the $80,000 mark for the first time since January. By Monday morning, Bitcoin had declined to $77,705, representing a 0.4% drop over the past 24 hours. Other major cryptocurrencies also experienced declines, with Ether falling 2.4% to $2,329, Solana decreasing 1.9% to $86, and BNB slipping 1.2% to $630. The rally that propelled Bitcoin to its highest level since January 31 lost momentum by mid-morning in Singapore. The initial upward push 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. Asian equities responded positively, with the MSCI Asia Pacific Index rising 1.7% and Taiwan Semiconductor Manufacturing surging 6% to a record high. However, Bitcoin's attempt to join this 'risk-on' move was short-lived, as it quickly detached from the trend. According to Rachael Lucas, an analyst at BTC Markets, the rejection at $79,399 can be technically explained by the fact that $80,000 is a critical level where many recent buyers are approaching breakeven, historically leading to selling pressure. Despite this, Bitcoin has seen a 16% increase in April, putting it 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. With funding rates on perpetual futures across major exchanges remaining negative, indicating that shorts are still paying longs to hold positions, a potential squeeze could occur if Bitcoin can maintain its position above the $79,000 level. The upcoming policy decisions by the Federal Reserve and European Central Bank, along with megacap tech earnings, could provide the necessary catalyst for Bitcoin's price movement. Without such a catalyst, the repeated rejection from the $79,000 level may define the current trading range rather than precede a breakout.