Bitcoin Retreats from 12-Week Peak as Sellers Intervene at $79,400

Bitcoin reached a 12-week high of $79,399 before encountering resistance from sellers during Monday's Asian trading session, thwarting its potential ascent to $80,000 for the first time since January. As of Monday morning, Bitcoin was trading at $77,705, marking a 0.4% decline over the past 24 hours. The cryptocurrency had surged to $79,399 around 09:00 IST before sharply reversing course. Other major cryptocurrencies also experienced declines, with Ether dropping 2.4% to $2,329, Solana falling 1.9% to $86, and BNB declining 1.2% to $630. The rally that propelled Bitcoin to its highest level since January 31 lost momentum by mid-morning Singapore time. This development came on the heels of a report from Axios indicating that Iran had proposed a new plan to the US to reopen the Strait of Hormuz, with nuclear talks delayed until after the US naval blockade is lifted. The news sparked a risk-on move in Asian equities, with the MSCI Asia Pacific Index rising 1.7%, the emerging markets index reaching a record high, and Taiwan Semiconductor Manufacturing surging 6% to a new record. However, Bitcoin's brief alignment with this risk-on move was short-lived, as it subsequently peeled away. According to analyst Rachael Lucas, the rejection at $79,399 can be attributed to the fact that $80,000 is a critical level where many recent buyers are approaching breakeven, historically leading to selling pressure as traders exit positions that were previously underwater. Despite this setback, Bitcoin remains up 16% in April, poised for its first double-digit monthly gain since May 2025. Furthermore, strategy bought $3.9 billion of Bitcoin this month, the largest monthly accumulation in a year, according to Bloomberg. With funding rates on perpetual futures across major exchanges remaining negative on a 7-day basis at -0.13%, shorts are still paying longs to hold positions, setting the stage for a potential squeeze if spot prices can hold above the $79,000 level that has now been rejected three times. This week, the Federal Reserve and European Central Bank are scheduled to announce policy decisions, while megacap tech earnings will include the four largest US companies by market cap. A catalyst from either the Fed or a single earnings beat could provide the necessary impetus for Bitcoin's price action, which has been missing so far. Without such a catalyst, the third rejection from $79,000 in eight sessions may start to define the range rather than precede a breakout.