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, causing the asset to reverse its course during Monday's Asian morning session. This move derailed the potential run towards $80,000, a level not seen since January. By Monday morning, Bitcoin had fallen to $77,705, marking a 0.4% decline over 24 hours. Other cryptocurrencies followed suit, 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 steam by mid-morning in Singapore. The initial surge was sparked by 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, which has delayed nuclear talks. This news led to a risk-on sentiment 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. Brent crude also pared its earlier gains, ending up 1% at $106.50 a barrel. Bitcoin initially moved in tandem with the risk-on sentiment before diverging. The rejection at $79,399 can be attributed to technical factors, as many recent buyers are nearing the breakeven point at $80,000, historically a level that generates selling pressure. Despite this, Bitcoin remains up 16% in April, on track for its first double-digit monthly gain since May 2025. According to Bloomberg, strategy bought $3.9 billion worth of Bitcoin this month, the largest monthly accumulation in a year. Funding rates for perpetual futures across major exchanges remain negative on a 7-day basis, indicating that shorts are still paying longs to hold positions. This setup could lead to a squeeze if Bitcoin can maintain its position above the $79,000 level, which has been rejected three times. With the Federal Reserve and European Central Bank set to make policy decisions this week, and major tech companies reporting earnings, either the Fed or a significant earnings beat could provide the catalyst for Bitcoin's next move.