Following a surge to a 12-week high of $79,399, bitcoin prices retreated as sellers took control during Monday's Asian trading session, halting a rally that had positioned the asset for a potential push towards $80,000 for the first time since January. As of Monday morning, bitcoin was valued at $77,705, marking a 0.4% decline over the past 24 hours. This downturn occurred after the cryptocurrency had reached $79,399 around 09:00 IST, only to sharply reverse course during the Asian session. Meanwhile, other major cryptocurrencies also experienced declines, with ether dropping 2.4% to $2,329, solana falling 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 in Singapore. The initial upward push was driven by a report from Axios indicating that Iran had proposed a new plan to the U.S. for reopening the Strait of Hormuz, with nuclear talks postponed until after the U.S. naval blockade is lifted.
Asian equities responded positively, 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. Brent crude oil prices also increased, paring earlier gains of 2.5% to finish 1% higher at $106.50 per barrel. Bitcoin initially moved in tandem with the broader risk-on sentiment but later diverged.
The rejection at $79,399 can be technically explained by the fact that $80,000 is a critical level where many recent buyers are approaching break-even, historically leading to selling pressure as these traders exit positions that were previously underwater. Despite this, bitcoin has gained 16% in April and is on track for its first double-digit monthly increase since May 2025. According to Bloomberg, strategy bought $3.9 billion worth of bitcoin this month, the largest monthly accumulation in a year.
Funding rates for perpetual futures across major exchanges remain negative on a 7-day basis at -0.13%, as per Coinglass, indicating that shorts are still paying longs to maintain their positions. This structural setup could lead to a squeeze if bitcoin prices 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, along with the release of megacap tech earnings from the four largest U.S. companies by market capitalization, either the Fed's decision or a strong earnings report could provide the catalyst needed to propel bitcoin forward. Without such a catalyst, the repeated rejection from the $79,000 level may define the current trading range rather than precede a breakout.