Bitcoin Retreats from 12-Week Peak as Sellers Intervene at $79,400

Bitcoin, with the symbol BTC, reached a 12-week high of $79,399 before encountering resistance from sellers during the Asian morning session on Monday, halting a rally that had positioned the asset for a potential surge to $80,000 for the first time since January. By Monday morning, Bitcoin was trading at $77,705, marking a 0.4% decline over the past 24 hours after peaking at $79,399 around 09:00 IST, only to sharply reverse course throughout the Asian session. Meanwhile, Ether declined 2.4% to $2,329, Solana dropped 1.9% to $86, and BNB fell 1.2% to $630. The rally that propelled Bitcoin to its highest level since January 31 lost momentum by mid-morning Singapore time. The upward push was sparked 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 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 set its own record. Brent crude pared its earlier 2.5% gains to end up 1% at $106.50 a barrel. Bitcoin initially moved in tandem with the risk-on sentiment before diverging. The rejection at $79,399 can be technically explained. According to Rachael Lucas, an analyst at BTC Markets, the $80,000 mark is where many recent buyers are approaching break-even, a level that historically generates selling pressure as traders exit positions they had been holding at a loss for weeks. Bitcoin has seen a 16% increase in April, putting it on track for its first double-digit monthly gain since May 2025. Strategy has bought $3.9 billion worth of Bitcoin this month, the firm's largest monthly accumulation in a year, as per Bloomberg. 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, a structural setup that could lead to a squeeze if the spot price can hold above the $79,000 level that has now been rejected three times. This week, the Federal Reserve and European Central Bank are set to make policy decisions, and the earnings of the four largest U.S. tech companies by market cap will be announced. Either the Fed's decision or a strong earnings report could provide the catalyst the Bitcoin market has been lacking. Without such a catalyst, the third rejection from the $79,000 level in eight sessions may define the current range rather than precede a breakout.