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 a selling wall, prompting a downturn during Monday's Asian morning session. This occurred after the asset had been poised to reach $80,000 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. The cryptocurrency had risen to $79,399 around 09:00 IST but sharply reversed course during the Asian session. Meanwhile, Ether experienced a 2.4% decline to $2,329, Solana fell 1.9% to $86, and BNB decreased 1.2% to $630. The rally that propelled Bitcoin to its highest level since January 31 lost momentum by mid-morning Singapore time. The upward push was sparked by a report from Axios indicating that Iran had presented a new proposal to the U.S. regarding the reopening of the Strait of Hormuz, with nuclear discussions postponed until after the U.S. naval blockade is lifted. Asian equities responded positively, 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 record level. Brent crude trimmed its earlier 2.5% gains to a 1% increase at $106.50 per barrel. Initially, Bitcoin followed the risk-on trend but later deviated from it. The rejection at $79,399 can be explained by technical factors. According to Rachael Lucas, an analyst at BTC Markets, the $80,000 mark is where many recent buyers are approaching break-even, historically leading 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, the largest monthly accumulation in a year, as per Bloomberg. 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 maintain positions. This setup can lead to a squeeze if spot prices hold above the $79,000 level, which has now been rejected three times. This week, the Federal Reserve and European Central Bank will announce policy decisions, and the four largest U.S. companies by market capitalization will release their earnings reports. Either the Fed's decision 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.