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 a seller wall, causing it to pull back. This occurred during the Asian morning session on Monday, halting the asset's potential run to $80,000 for the first time since January. At the time of writing, Bitcoin was trading at $77,705, representing a 0.4% decrease over the past 24 hours. The cryptocurrency had initially climbed to $79,399 around 09:00 IST but then sharply reversed direction. Other major cryptocurrencies also experienced declines, with Ether dropping 2.4% to $2,329, Solana falling 1.9% to $86, and BNB declining 1.2% to $630. The rally that propelled Bitcoin to its highest level since January 31 lost momentum by mid-morning Singapore time. The push higher was attributed to a report from Axios stating that Iran had proposed a new plan to the US to reopen the Strait of Hormuz, with nuclear talks delayed until after the US naval blockade is lifted. Asian equities responded positively to the news, 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 also pared its earlier 2.5% gains to finish up 1% at $106.50 a barrel. Initially, Bitcoin traded in tandem with the risk-on move but then diverged. According to Rachael Lucas, an analyst at BTC Markets, the rejection at $79,399 can be technically explained by the fact that $80,000 is a level where many recent buyers are approaching breakeven, historically leading to selling pressure as traders exit positions they had been holding at a loss for weeks. Despite the pullback, Bitcoin remains up 16% in April, on track for its first double-digit monthly gain since May 2025. Strategy has bought $3.9 billion of Bitcoin this month, the largest monthly accumulation in a year, according to 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. This structural setup could lead to a squeeze if the spot price can hold above the $79,000 level that has now been rejected three times. The Federal Reserve and European Central Bank are set to make policy decisions this week, and megacap tech earnings, including the four largest US companies by market cap, are also scheduled. Either the Fed 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.