Bitcoin Retracts 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 resistance during Monday's Asian morning session, thereby halting its ascent towards the $80,000 mark for the first time since January. By Monday morning, Bitcoin had dropped to $77,705, representing a 0.4% decline over 24 hours, after having peaked at $79,399 around 09:00 IST and subsequently experiencing a sharp reversal throughout the Asian session. Concurrently, Ether experienced a 2.4% decline to $2,329, while Solana and BNB fell by 1.9% to $86 and 1.2% to $630, respectively. The rally that propelled Bitcoin to its highest level since January 31 lost momentum by mid-morning Singapore time. The catalyst for the upward push was 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. This development led to a surge in Asian equities, with the MSCI Asia Pacific Index rising by 1.7%, the emerging markets index reaching a record high, and Taiwan Semiconductor Manufacturing increasing by 6% to achieve its own record. Meanwhile, Brent crude pared its initial 2.5% gains to finish with a 1% increase at $106.50 per barrel. Initially, Bitcoin moved in tandem with the risk-on sentiment before diverging. The rejection at $79,399 can be attributed to technical factors. According to Rachael Lucas, an analyst at BTC Markets, the $80,000 threshold is where many recent buyers are nearing breakeven, a level that historically triggers selling pressure as traders exit positions they had been holding at a loss for weeks. Bitcoin has gained 16% in April, positioning itself for its first double-digit monthly increase since May 2025. Strategy has purchased $3.9 billion worth of Bitcoin this month, as per Bloomberg, marking the firm's largest monthly accumulation in a year. Funding rates on perpetual futures across major exchanges remain negative on a 7-day basis, standing at -0.13% per Coinglass, indicating that shorts are still paying longs to maintain positions. This structural setup has the potential to trigger 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 announce policy decisions this week, and megacap tech earnings scheduled for the four largest U.S. companies by market cap, either the Fed or a single earnings beat could provide the necessary catalyst for the Bitcoin market. Without such a catalyst, the third rejection from $79,000 in eight sessions may define the range rather than precede a breakout.