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 selling wall, prompting a reversal during morning hours in Asia on Monday. This downturn halted the asset's ascent towards the $80,000 mark for the first time since January. At the time of reporting, Bitcoin was trading at $77,705, marking a 0.4% decline over the past 24 hours. The cryptocurrency had briefly touched $79,399 around 09:00 IST before sharply reversing course. Concurrently, Ether experienced a 2.4% decline to $2,329, while Solana and BNB saw decreases of 1.9% to $86 and 1.2% to $630, respectively. The rally that propelled Bitcoin to its highest level since January 31 lost momentum by mid-morning Singapore time. The initial surge was attributed to a report from Axios indicating Iran's proposal to the U.S. to reopen the Strait of Hormuz, contingent upon the lifting of the U.S. naval blockade, thereby delaying nuclear talks. This development sparked a risk-on sentiment in Asian equities, with the MSCI Asia Pacific Index rising 1.7% and the emerging markets index reaching a record high. Taiwan Semiconductor Manufacturing saw a notable 6% increase to a record high. Meanwhile, Brent crude pared its earlier 2.5% gains, ultimately closing 1% higher at $106.50 per barrel. Bitcoin initially followed the risk-on trend before diverging. The rejection at $79,399 can be explained by technical factors. According to Rachael Lucas, an analyst at BTC Markets, the $80,000 threshold is where many recent buyers are approaching break-even, historically leading to selling pressure as traders exit positions that were previously underwater. Despite this, Bitcoin has seen a 16% increase in April, positioning it for its first double-digit monthly gain since May 2025. Strategy has accumulated $3.9 billion in Bitcoin this month, the largest monthly accumulation in a year, as reported by 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 can lead to a squeeze if the spot price can maintain a level above $79,000, which has been rejected three times. The Federal Reserve and European Central Bank are set to make policy decisions this week, and the earnings reports of the four largest U.S. companies by market cap are also anticipated. Either the Fed's decision or a significant earnings beat could provide the catalyst needed for Bitcoin's price movement. Without such a catalyst, the repeated rejection from the $79,000 level may define the range rather than precede a breakout.