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 fallen to $77,705, representing a 0.4% decline over 24 hours.
This downturn was accompanied by a 2.4% drop in Ether to $2,329, a 1.9% decrease in Solana to $86, and a 1.2% decline in BNB to $630. The rally that propelled Bitcoin to its highest level since January 31 lost momentum by mid-morning Singapore time. The initial push higher was driven by a report from Axios indicating Iran's proposal to the U.S. to reopen the Strait of Hormuz, which was contingent upon the lifting of the U.S.
naval blockade and the delay of nuclear talks. This news 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 record level. However, Bitcoin's attempt to join this rally was short-lived, as it ultimately peeled away.
According to Rachael Lucas, an analyst at BTC Markets, the rejection at $79,399 can be attributed to the fact that $80,000 represents a breakeven point for many recent buyers, which historically leads to selling pressure as traders exit positions that were previously underwater. Despite this setback, Bitcoin remains up 16% in April, poised for its first double-digit monthly gain since May 2025. Strategy has acquired $3.9 billion worth of Bitcoin this month, marking the firm's largest monthly accumulation in a year. The funding rates on perpetual futures across major exchanges remain negative on a 7-day basis, indicating that shorts are still paying longs to hold positions.
This structural setup could lead to a squeeze if Bitcoin can maintain its position above the $79,000 level, which has 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, the stage is set for a potential catalyst that could propel Bitcoin forward. Alternatively, the absence of such a catalyst may solidify the range rather than precipitate a breakout.