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 Monday's Asian morning hours, thereby halting its ascent towards the $80,000 mark for the first time since January. As of Monday morning, Bitcoin was trading at $77,705, representing a 0.4% decline over the past 24 hours, after briefly reaching $79,399 around 09:00 IST, only to sharply reverse direction during 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 dissipated by mid-morning Singapore time. The surge was triggered by 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 1.7%, the emerging markets index reaching a record high, and Taiwan Semiconductor Manufacturing soaring 6% to a new record. Brent crude also pared its earlier 2.5% gains, ultimately rising 1% to $106.50 per barrel. Initially, Bitcoin moved in tandem with the risk-on sentiment but subsequently deviated. The rejection at $79,399 can be attributed to technical factors. According to Rachael Lucas, an analyst at BTC Markets, the $80,000 mark is where numerous recent buyers are approaching breakeven, which historically leads to selling pressure as traders liquidate positions they had been holding at a loss for weeks. Bitcoin has gained 16% in April, putting it on track 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 for 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 structural setup can lead to a squeeze if the spot price can maintain its position 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 the upcoming release of megacap tech earnings, including those of the four largest U.S. companies by market capitalization, 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.