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

Bitcoin, trading at $77,570.32, reached a 12-week high of $79,399 before encountering a wall of sellers during Monday's Asian morning session, halting its ascent towards $80,000 for the first time since January. By Monday morning, Bitcoin had declined 0.4% to $77,705 after peaking at $79,399 around 09:00 IST, only to sharply reverse course during the Asia session. Meanwhile, Ether dropped 2.4% to $2,329, Solana fell 1.9% to $86, and BNB slipped 1.2% to $630, as the rally that propelled Bitcoin to its highest level since January 31 dissipated by mid-morning Singapore time. The push higher was sparked by an Axios report 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. Asian equities rallied in response, 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. Brent crude pared its earlier 2.5% gains to finish up 1% at $106.50 a barrel. Bitcoin initially moved in tandem with the risk-on sentiment before diverging. The rejection at $79,399 can be attributed to technical factors. According to Rachael Lucas, an analyst at BTC Markets, the $80,000 mark is where many recent buyers are approaching breakeven, historically leading to selling pressure as traders exit positions they had been underwater on for weeks. Bitcoin has gained 16% in April, on track for its first double-digit monthly increase since May 2025. Strategy has purchased $3.9 billion worth of Bitcoin this month, the largest monthly accumulation in a year, according to 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 hold positions. This structural setup could lead to a squeeze if spot prices can hold above the $79,000 level, which has now been rejected three times. With the Federal Reserve and European Central Bank set to make policy decisions this week, and megacap tech earnings on the horizon, including the four largest US companies by market cap, either the Fed 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.