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 towards $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, after having reached $79,399 around 09:00 IST. Other cryptocurrencies, such as Ether, Solana, and BNB, also witnessed declines of 2.4%, 1.9%, and 1.2%, respectively.
The rally that propelled Bitcoin to its highest level since January 31 lost momentum by mid-morning Singapore time. This development was preceded by a report from Axios that Iran had proposed a new plan to the US to reopen the Strait of Hormuz, with nuclear talks postponed until after the US naval blockade is lifted. The news triggered a risk-on move in Asian equities, with the MSCI Asia Pacific Index rising 1.7% and the emerging markets index reaching a record high.
However, Bitcoin's brief alignment with this trend was short-lived, as it subsequently deviated from the risk-on move. 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 resulting in selling pressure as traders exit positions that were previously underwater. Despite this, Bitcoin has experienced a 16% increase in April, 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, marking the firm's largest monthly accumulation in a year. With funding rates on perpetual futures across major exchanges remaining negative on a 7-day basis at -0.13%, shorts are still paying longs to hold positions, creating a structural setup that could lead to a squeeze if the spot price can hold above the $79,000 level that has now been rejected three times. This week, the Federal Reserve and European Central Bank are set to make policy decisions, while megacap tech earnings, including those of the four largest US companies by market cap, are also scheduled to be released.
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.