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, hindering its ascent towards $80,000 for the first time since January. As of Monday morning, Bitcoin was trading at $77,705, marking a 0.4% decline over the past 24 hours after briefly touching $79,399 around 09:00 IST. The prices of other major cryptocurrencies also fell, with Ether decreasing by 2.4% to $2,329, Solana dropping 1.9% to $86, and BNB declining 1.2% to $630. The rally that had propelled Bitcoin to its highest level since January 31 lost momentum by mid-morning in Singapore.
The surge in Bitcoin's price was triggered by a report from Axios stating that Iran had proposed a new plan to the US to reopen the Strait of Hormuz, with nuclear talks postponed until after the US naval blockade is lifted. This news led to a rise in Asian equities, with the MSCI Asia Pacific Index increasing by 1.7% and the emerging markets index reaching a record high. Taiwan Semiconductor Manufacturing's stock price also surged 6% to a record high.
Brent crude oil prices initially rose 2.5% but later pared gains to a 1% increase at $106.50 per barrel. Bitcoin initially followed the risk-on trend but then deviated from it.
According to Rachael Lucas, an analyst at BTC Markets, the rejection at $79,399 can be technically explained by the fact that many recent buyers are approaching the breakeven point at $80,000, which historically leads to selling pressure as traders exit positions that were previously unprofitable. Despite the setback, Bitcoin has gained 16% in April and is on track for its first double-digit monthly increase since May 2025. Strategy has purchased $3.9 billion worth of Bitcoin this month, the largest monthly accumulation in a year, according to Bloomberg. Funding rates for perpetual futures across major exchanges remain negative on a 7-day basis at -0.13%, 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 scheduled to make policy decisions this week, and the earnings reports of the four largest US companies by market capitalization 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.