The price of Bitcoin, which had reached a 12-week high of $79,399, experienced a sharp reversal during the Asian morning session on Monday, as sellers intervened and put an end to the rally that had positioned the asset for a potential surge to $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. This downturn occurred after the cryptocurrency had climbed to $79,399 around 09:00 IST, only to sharply reverse course throughout the Asia session.
Other major cryptocurrencies also experienced declines, with Ether falling 2.4% to $2,329, Solana dropping 1.9% to $86, and BNB decreasing 1.2% to $630. The rally that had propelled Bitcoin to its highest level since January 31 lost momentum by mid-morning Singapore time. The initial surge had been prompted by a report from Axios indicating that Iran had proposed a new plan to the U.S. to reopen the Strait of Hormuz, with nuclear talks delayed until after the U.S.
naval blockade is lifted. This development had a positive impact on Asian equities, with the MSCI Asia Pacific Index rising 1.7% and the emerging markets index reaching a record high. Taiwan Semiconductor Manufacturing also experienced a significant surge, rising 6% to a record high. Meanwhile, Brent crude pared its earlier 2.5% gains to finish up 1% at $106.50 a barrel.
Initially, Bitcoin had traded in tandem with the risk-on move, but it eventually peeled away. According to Rachael Lucas, an analyst at BTC Markets, the rejection at $79,399 can be attributed to the fact that many recent buyers are approaching breakeven at the $80,000 level, which has historically led to selling pressure as traders rotate out of positions they had been holding at a loss for weeks. 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, the largest monthly accumulation in a year, according to Bloomberg.
The funding rates on perpetual futures across major exchanges remain negative on a 7-day basis, at -0.13% per Coinglass, indicating that shorts are still paying longs to hold positions. This structural setup could lead to a squeeze if the spot price can hold above the $79,000 level, which has now been rejected three times. The Federal Reserve and European Central Bank are both scheduled to make policy decisions this week, and the earnings reports of the four largest U.S.
companies by market cap are also expected. Either the Fed's decision or a strong earnings report 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.