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 wall of sellers during the Asian morning session on Monday, halting its ascent towards $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, after having peaked at $79,399 around 09:00 IST and subsequently reversing its course during the Asian 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 lost momentum by mid-morning Singapore time. The surge had been triggered 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. This development led to a risk-on move in Asian equities, 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. Meanwhile, Brent crude pared its initial 2.5% gains to end up 1% at $106.50 a barrel. Bitcoin initially followed the risk-on trend but then diverged. The rejection at $79,399 can be attributed to a clean technical explanation. According to Rachael Lucas, an analyst at BTC Markets, the $80,000 mark is where many recent buyers are nearing breakeven, which historically leads to selling pressure as traders exit positions they had been holding at a loss for weeks. Despite this, Bitcoin has seen 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, as per Bloomberg. Funding rates on perpetual futures across major exchanges remain negative on a 7-day basis at -0.13%, according to Coinglass, indicating that shorts are still paying longs to hold positions. This structural setup could lead to a squeeze if the spot price can maintain its position 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, and megacap tech earnings on the horizon, including the four largest U.S. companies by market cap, either the Fed or a single earnings beat could provide the necessary catalyst for Bitcoin. Without such a catalyst, the third rejection from $79,000 in eight sessions may define the range rather than precede a breakout.