Bitcoin reached a 12-week high of $79,399 before encountering resistance from sellers during Monday's Asian trading hours, thwarting its potential ascent to $80,000 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.
This followed a sharp reversal after touching $79,399 around 09:00 IST. Meanwhile, other cryptocurrencies also experienced declines, with Ether dropping 2.4% to $2,329, Solana falling 1.9% to $86, and BNB decreasing 1.2% to $630. The rally that propelled Bitcoin to its highest level since January 31 lost momentum by mid-morning in Singapore.
The upward push was initially driven by a report from Axios regarding Iran's proposal to the US to reopen the Strait of Hormuz, which was contingent upon the lifting of the US naval blockade and the delay of nuclear talks. Asian stocks responded positively, with the MSCI Asia Pacific Index rising 1.7% and the emerging markets index reaching a record high. Taiwan Semiconductor Manufacturing saw a 6% surge to a new record. Brent crude oil prices also increased, albeit at a slower pace, ending up 1% at $106.50 per barrel after initially gaining 2.5%.
Bitcoin initially followed the risk-on trend but then diverged. The rejection at $79,399 can be explained technically. According to Rachael Lucas, an analyst at BTC Markets, the $80,000 mark is where many recent buyers are nearing breakeven, which historically leads to selling pressure as traders exit positions that were previously unprofitable.
Despite this, Bitcoin has seen a 16% increase in April, poised for its first double-digit monthly gain since May 2025. Strategy has accumulated $3.9 billion worth of Bitcoin this month, the largest monthly accumulation in a year, as per Bloomberg. Funding rates for perpetual futures across major exchanges remain negative on a 7-day basis, at -0.13% according to Coinglass, indicating that shorts are still paying longs to maintain their positions. This setup can 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 make policy decisions this week, along with the release of earnings reports from the four largest US companies by market capitalization, either the Fed's decision or a strong earnings report 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.