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

Following a surge to a 12-week high of $79,399, Bitcoin experienced a sharp reversal during Monday's Asian morning session, as sellers intervened and derailed the asset's potential run to $80,000 for the first time since January. By Monday morning, Bitcoin had declined to $77,705, representing a 0.4% drop over 24 hours. This downturn occurred after the cryptocurrency reached $79,399 around 09:00 IST, only to reverse course throughout the Asian session. Meanwhile, other major cryptocurrencies also saw declines, with Ether falling 2.4% to $2,329, Solana dropping 1.9% to $86, and BNB decreasing 1.2% to $630. The rally that propelled Bitcoin to its highest level since January 31 lost momentum by mid-morning Singapore time. The initial surge was prompted 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 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 reaching a record high, and Taiwan Semiconductor Manufacturing surging 6% to a new record. However, Bitcoin's attempt to join this upward trend was short-lived, as it eventually broke away. According to Rachael Lucas, an analyst at BTC Markets, 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 these traders exit positions that were previously underwater. Despite this setback, Bitcoin remains on track for its first double-digit monthly gain since May 2025, with a 16% increase in April. Furthermore, strategy bought $3.9 billion of Bitcoin this month, marking the firm's largest monthly accumulation in a year, according to Bloomberg. The 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 produce a squeeze if the spot price 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 U.S. companies by market cap, either the Fed or a single earnings beat could provide the catalyst the Bitcoin market has been lacking. If not, the third rejection from $79,000 in eight sessions may define the range rather than precede a breakout.