Bitcoin reached a 12-week high of $79,399 before encountering a significant seller wall, prompting a downward correction. The cryptocurrency had been poised to break the $80,000 threshold for the first time since January but was met with selling pressure during Asian trading hours on Monday. As a result, Bitcoin's price retreated to $77,705, representing a 0.4% decline over 24 hours.
Other major cryptocurrencies, including Ether, Solana, and BNB, also experienced losses. The initial surge in Bitcoin's price was sparked by reports of a potential breakthrough in US-Iran negotiations, which boosted Asian equities and led to a brief risk-on sentiment in the markets.
However, Bitcoin's failure to sustain its upward momentum has been attributed to technical factors, including the $80,000 level being a breakeven point for many recent buyers, thereby generating selling pressure. Despite this setback, Bitcoin remains on track for its first double-digit monthly gain since May 2025, with a 16% increase in April. Strategic investors have accumulated $3.9 billion worth of Bitcoin this month, the largest monthly purchase in a year.
The negative funding rates on perpetual futures contracts suggest that shorts are still paying longs to maintain their positions, setting the stage for a potential squeeze if Bitcoin can hold above the $79,000 level. With key policy decisions from the Federal Reserve and European Central Bank, as well as major tech earnings on the horizon, the market is awaiting a catalyst to drive the next move in Bitcoin's price.