Bitcoin, with the symbol BTC, reached a 12-week high of $79,399 before encountering a seller wall, prompting a sharp reversal during Monday's Asian morning session. This development 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. Other cryptocurrencies, including Ether, Solana, and BNB, also experienced declines of 2.4%, 1.9%, and 1.2%, respectively.
The rally that had propelled Bitcoin to its highest level since January 31 lost momentum by mid-morning in Singapore. The initial surge was attributed to a report from Axios regarding Iran's proposal to the US to reopen the Strait of Hormuz, which was contingent upon the lifting of the US naval blockade.
This news sparked a risk-on move in Asian equities, with the MSCI Asia Pacific Index rising 1.7% and Taiwan Semiconductor Manufacturing reaching a record high. However, Bitcoin's attempt to reach $80,000 was met with resistance, and the rejection at $79,399 can be explained by the fact that many recent buyers are approaching breakeven at this level, historically leading to selling pressure. Despite this, Bitcoin has gained 16% in April and is on track for its first double-digit monthly gain since May 2025. Furthermore, strategy bought $3.9 billion worth of Bitcoin this month, marking the largest monthly accumulation in a year.
The funding rates on perpetual futures across major exchanges remain negative, indicating that shorts are still paying longs to hold positions. This setup could lead to a squeeze if the spot price can hold above the $79,000 level, which has been rejected three times. The upcoming policy decisions by the Federal Reserve and European Central Bank, as well as the earnings reports from the four largest US companies by market cap, could provide the necessary catalyst for a breakout.