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 the Asian morning session on Monday, thereby halting its ascent towards the $80,000 mark for the first time since January. As of Monday morning, Bitcoin was valued at $77,705, representing a 0.4% decline over the past 24 hours, after briefly touching $79,399 around 09:00 IST. The prices of other cryptocurrencies also experienced a downturn, with Ether decreasing by 2.4% to $2,329, Solana falling by 1.9% to $86, and BNB declining by 1.2% to $630. By mid-morning in Singapore, the rally that had propelled Bitcoin to its highest level since January 31 had dissipated. This surge was triggered by a report from Axios indicating that Iran had proposed a new plan to the United States to reopen the Strait of Hormuz, contingent upon the lifting of the U.S. naval blockade, thereby delaying nuclear talks. In response, Asian equities experienced a surge, with the MSCI Asia Pacific Index rising by 1.7%, the emerging markets index reaching a record high, and Taiwan Semiconductor Manufacturing increasing by 6% to set a new record. Meanwhile, Brent crude pared its initial 2.5% gains to a 1% increase, reaching $106.50 per barrel. Initially, Bitcoin moved in tandem with the risk-on sentiment but subsequently diverged. According to Rachael Lucas, an analyst at BTC Markets, the rejection at $79,399 can be attributed to the fact that $80,000 represents the breakeven point for many recent buyers, which historically leads to selling pressure as traders liquidate their positions. This month, Bitcoin has experienced a 16% increase, positioning it for its first double-digit monthly gain since May 2025. Strategy has accumulated $3.9 billion worth of Bitcoin this month, marking the largest monthly accumulation in a year, as per Bloomberg. The funding rates for perpetual futures across major exchanges remain negative on a 7-day basis, standing at -0.13% according to Coinglass, indicating that shorts are still paying longs to maintain their 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. With the Federal Reserve and European Central Bank set to announce policy decisions this week, and the upcoming megacap tech earnings, including the four largest U.S. companies by market capitalization, either the Fed or a single earnings beat could provide the necessary catalyst for the Bitcoin market. Without such a catalyst, the third rejection from the $79,000 level in eight sessions may define the range rather than precede a breakout.