Following a surge to a 12-week high of $79,399, bitcoin experienced a sharp reversal during Asian morning hours on Monday, as sellers stepped in to counter the rally that had poised the asset for a potential push towards $80,000 for the first time since January. By Monday morning, bitcoin had dropped to $77,705, reflecting a 0.4% decline over the preceding 24 hours.
This downturn was accompanied by declines in other major cryptocurrencies, including Ether, Solana, and BNB, which fell by 2.4%, 1.9%, and 1.2%, respectively. The initial upward momentum, fueled by reports of a new Iranian proposal to the US regarding the reopening of the Strait of Hormuz, had briefly lifted bitcoin, only to be followed by a sharp pullback. The rejection at $79,399 can be attributed to the historical selling pressure that arises when recent buyers approach the breakeven point, in this case, around $80,000.
Despite this setback, bitcoin remains up 16% for the month, on track for its first double-digit monthly gain since May 2025, with significant accumulation by strategy buyers. However, with funding rates on perpetual futures remaining negative, the stage is set for a potential squeeze if bitcoin can maintain its position above the $79,000 level, which has now been rejected three times.
The upcoming policy decisions by the Federal Reserve and European Central Bank, along with key tech earnings, could provide the catalyst needed for a breakout or further define the current range.