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 wall of sellers during Asian morning trading on Monday, halting its rally that had positioned the asset for a potential surge to $80,000 for the first time since January. By Monday morning, Bitcoin was trading at $77,705, representing a 0.4% decline over 24 hours, after it had climbed to $79,399 around 09:00 IST and then sharply reversed during the Asian session. Meanwhile, Ether dropped 2.4% to $2,329, Solana decreased 1.9% to $86, and BNB fell 1.2% to $630. The rally that propelled Bitcoin to its highest level since January 31 dissipated by mid-morning Singapore time. The upward push was triggered by a report from Axios stating that Iran had presented a new proposal to the U.S. aimed at reopening the Strait of Hormuz, with nuclear talks postponed until after the U.S. naval blockade is lifted. Asian equities responded positively, with the MSCI Asia Pacific Index rising 1.7%, the emerging markets index reaching a record high, and Taiwan Semiconductor Manufacturing surging 6% to set its own record. Brent crude oil pared its earlier 2.5% gains to finish up 1% at $106.50 per barrel. Initially, Bitcoin moved in tandem with the risk-on sentiment but then 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, a level that historically generates selling pressure as traders exit positions they had been holding at a loss for weeks. Bitcoin has gained 16% in April, on track for its first double-digit monthly gain since May 2025. Strategy bought $3.9 billion worth of Bitcoin this month, as reported by Bloomberg, marking the firm's largest monthly accumulation in a year. 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 can lead to a squeeze if the spot price can hold above the $79,000 level, which has now been rejected three times. The Federal Reserve and European Central Bank are set to make policy decisions this week, and the earnings of the four largest U.S. tech companies by market capitalization are also scheduled. Either a decision from the Fed or a positive earnings report could provide the catalyst that the Bitcoin market has been lacking. Without such a catalyst, the third rejection from $79,000 in eight sessions may define the trading range rather than precede a breakout.