Bitcoin, with the symbol BTC, reached a 12-week high of $79,399 before encountering selling pressure during the Asian morning session on Monday, thereby halting a rally that had positioned the asset for a potential break 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, following its ascent to $79,399 around 09:00 IST, only to sharply reverse during the Asia session. Other 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 dissipated by mid-morning Singapore time.
The catalyst for the upward push was a report from Axios indicating Iran's proposal 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 its own record. Brent crude oil also saw gains, though it pared earlier 2.5% increases to end up 1% at $106.50 per barrel. Initially, Bitcoin moved in tandem with the risk-on sentiment but then diverged. 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 nearing break-even, a point that historically leads to selling pressure as traders exit positions they have been holding at a loss for weeks. Despite this, Bitcoin has seen a 16% increase in April, positioning it for its first double-digit monthly gain since May 2025.
Additionally, strategy acquired $3.9 billion worth of Bitcoin this month, the 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%, as reported by Coinglass, indicating that shorts are still paying longs to maintain their positions. This setup can lead to a squeeze if the spot price 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 megacap tech earnings from the four largest U.S.
companies by market cap, either the Fed's decision or a significant earnings beat could provide the catalyst the Bitcoin market is lacking. Without such a catalyst, the third rejection from the $79,000 level in eight sessions may define the current trading range rather than precede a breakout.