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 resistance from sellers during Asian morning hours on Monday, halting a rally that had poised the asset for a potential run to $80,000 for the first time since January. As of Monday morning, Bitcoin was trading at $77,705, marking a 0.4% decrease over 24 hours after hitting $79,399 around 09:00 IST and then sharply reversing during the Asia session. Meanwhile, Ether dropped 2.4% to $2,329, Solana fell 1.9% to $86, and BNB declined 1.2% to $630. The rally that propelled Bitcoin to its highest level since January 31 lost momentum by mid-morning Singapore time. This surge was reportedly triggered by an Axios report stating 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. The news sparked a rally 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. Brent crude also pared earlier gains, ending up 1% at $106.50 a barrel. Initially, Bitcoin moved in tandem with the risk-on sentiment but later diverged. The rejection at $79,399 can be technically explained. According to Rachael Lucas, an analyst at BTC Markets, the $80,000 mark is where many recent buyers are approaching breakeven, historically leading to selling pressure as traders exit positions they had been holding at a loss for weeks. Despite this, Bitcoin is 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, as per 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 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, and megacap tech earnings including the four largest U.S. companies by market cap, either the Fed or a single earnings beat could provide the catalyst the Bitcoin market has been lacking. Without such a catalyst, the third rejection from $79,000 in eight sessions may define the range rather than precede a breakout.