Bitcoin Retracts 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 resistance from sellers during the Asian morning session on Monday, thereby halting its ascent towards the $80,000 mark for the first time since January. By Monday morning, Bitcoin was trading at $77,705, representing a 0.4% decline over the past 24 hours, after having surged to $79,399 around 09:00 IST and subsequently experiencing a sharp reversal throughout the Asian session. Meanwhile, Ether declined by 2.4% to $2,329, Solana fell by 1.9% to $86, and BNB slipped by 1.2% to $630. The rally that propelled Bitcoin to its highest level since January 31 dissipated by mid-morning Singapore time. The upward push was triggered by a report from Axios stating that Iran had proposed a new initiative to the U.S. to reopen the Strait of Hormuz, with nuclear talks delayed until after the U.S. naval blockade is lifted. Asian equities responded positively to the news, with the MSCI Asia Pacific Index rising by 1.7%, the emerging markets index reaching a record high, and Taiwan Semiconductor Manufacturing surging by 6% to its own record. Brent crude initially gained 2.5% but later pared its gains to a 1% increase at $106.50 per barrel. Bitcoin briefly followed the risk-on trend before diverging from it. 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 approaching breakeven, which historically leads to selling pressure as those traders exit positions they were underwater on for weeks. Bitcoin has experienced 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, as per Bloomberg, marking the firm's largest monthly accumulation in a year. 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 hold above the $79,000 level that has now been rejected three times. This week, the Federal Reserve and European Central Bank are scheduled to make policy decisions, and megacap tech earnings will include the four largest U.S. companies by market cap. Either the Fed's decision or a single earnings beat could provide the catalyst 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.