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 selling wall, prompting a reversal during morning hours in Asia on Monday. This shift occurred after the asset had been poised for a potential run to $80,000, a level not seen since January. As of Monday morning, Bitcoin was trading at $77,705, representing a 0.4% decline over the past 24 hours. 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 had driven Bitcoin to its highest point since January 31 lost momentum by mid-morning in Singapore. The initial upward push was attributed to a report from Axios indicating that Iran had proposed a new plan to the U.S. for reopening the Strait of Hormuz, contingent upon the lifting of the U.S. naval blockade, which has delayed nuclear talks. This development sparked a positive reaction in Asian equities, with the MSCI Asia Pacific Index rising 1.7% and the emerging markets index reaching a record high. Taiwan Semiconductor Manufacturing saw a significant surge of 6% to set a new record. Meanwhile, Brent crude oil pared its earlier gains of 2.5% to finish 1% higher at $106.50 per barrel. Bitcoin initially followed the risk-on trend but then diverged. 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 as these traders exit positions that were previously underwater. Bitcoin has seen a 16% increase in April, putting it on track for its first double-digit monthly gain since May 2025. Strategy has purchased $3.9 billion in 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 positions. This structural 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 make policy decisions this week, and major tech earnings on the horizon, including the four largest U.S. companies by market cap, either the Fed's decision or a strong earnings report could provide the necessary catalyst for Bitcoin. Without such a catalyst, the repeated rejection from the $79,000 level may define the range rather than precede a breakout.