Bitcoin Retracts 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 rally that had positioned the asset for a potential surge to $80,000 for the first time since January. As of Monday morning, Bitcoin was valued at $77,705, representing a 0.4% decline over the previous 24 hours. The cryptocurrency had ascended to $79,399 around 09:00 IST before sharply reversing its course throughout the Asian session. Meanwhile, Ether experienced a 2.4% decline to $2,329, Solana dropped 1.9% to $86, and BNB decreased by 1.2% to $630. The rally that propelled Bitcoin to its highest level since January 31 dissipated by mid-morning Singapore time. This uptrend was fueled 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 negotiations postponed until after the U.S. naval blockade is lifted. As a result, Asian equities saw a surge, with the MSCI Asia Pacific Index rising 1.7%, the emerging markets index reaching a record high, and Taiwan Semiconductor Manufacturing experiencing a 6% increase to set its own record. Brent crude initially gained 2.5% but later pared its gains to a 1% increase at $106.50 per barrel. Bitcoin initially participated in the risk-on movement 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 break-even, which historically leads to selling pressure as traders exit positions they had been holding at a loss for weeks. This month, Bitcoin has seen a 16% increase, putting it on track for its first double-digit monthly gain since May 2025. Strategy has purchased $3.9 billion worth of Bitcoin this month, as reported by Bloomberg, marking the firm's largest monthly accumulation in a year. Funding rates on 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. Both the Federal Reserve and the European Central Bank have policy decisions this week, and the earnings of the four largest U.S. companies by market capitalization are also scheduled. Either the Fed's decision or a single earnings beat 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 range rather than precede a breakout.