Bitcoin Retreated From 12-Week High After Hitting Resistance at $79,400

Bitcoin, with the symbol BTC, reached a 12-week peak of $79,399 before encountering selling pressure during the Asian morning hours on Monday, which halted the 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 trading at $77,705, marking a 0.4% decrease over 24 hours after it had climbed to $79,399 around 09:00 IST and then sharply reversed during the Asia session. Meanwhile, Ether dropped 2.4% to $2,329, Solana fell 1.9% to $86, and BNB declined 1.2% to $630. The rally that pushed Bitcoin to its highest level since January 31 lost momentum by mid-morning Singapore time. This upward push was prompted by a report from Axios stating that Iran had presented a new proposal to the U.S. to reopen the Strait of Hormuz, with nuclear talks delayed until after the U.S. naval blockade is lifted. Asian equities responded positively to the news, with the MSCI Asia Pacific Index rising 1.7%, the emerging markets index reaching a record high, and Taiwan Semiconductor Manufacturing surging 6% to its own record. Brent crude initially gained 2.5% but later pared its gains to 1% at $106.50 a barrel. Bitcoin briefly followed the risk-on trend before deviating from it. 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 breakeven, which historically leads to selling pressure as traders exit positions they were underwater on 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 bought $3.9 billion worth of Bitcoin this month, the firm's 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 hold positions. This structural setup can lead to a squeeze if the spot price can hold above the $79,000 level, which has now been rejected three times. The Federal Reserve and European Central Bank are set to make policy decisions this week, and the earnings of the four largest U.S. companies by market cap, which are megacap tech companies, will also be released. Either the Fed's decision or a single earnings beat could provide the catalyst that the Bitcoin market has been missing. Without such a catalyst, the third rejection from $79,000 in eight sessions may start to define the range rather than precede a breakout.