Following a surge to a 12-week high of $79,399, bitcoin retreated as sellers took control during Monday's Asian morning session, halting a rally that had positioned the asset for a potential breakthrough to $80,000 for the first time since January. At $77,705 on Monday morning, bitcoin saw a 0.4% decline over 24 hours, after reaching $79,399 around 09:00 IST and then sharply reversing during the Asia session. Meanwhile, ether dropped 2.4% to $2,329, solana fell 1.9% to $86, and BNB declined 1.2% to $630, as the rally that drove bitcoin to its highest level since January 31 lost momentum by mid-morning Singapore time.
The initial push upwards was fueled by a report from Axios regarding Iran's new proposal 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 sparked a risk-on move in Asian equities, with the MSCI Asia Pacific Index rising 1.7%, the emerging markets index hitting a record, and Taiwan Semiconductor Manufacturing surging 6% to a new record.
However, after initially following this trend, bitcoin diverged and faced rejection at $79,399, which, according to analyst Rachael Lucas, can be technically explained by the fact that $80,000 is the breakeven point for many recent buyers, historically leading to selling pressure. Despite this, bitcoin remains up 16% in April, on track for its first double-digit monthly gain since May 2025, with strategy buying $3.9 billion of bitcoin this month.
The funding rates on perpetual futures across major exchanges remain negative, indicating shorts are still paying longs to hold positions, setting up a potential squeeze if spot prices can hold above $79,000. This week, key events include policy decisions from the Federal Reserve and European Central Bank, as well as megacap tech earnings, which could provide the catalyst needed for a breakout or further define the current range.