Bitcoin, with the symbol BTC, reached a 12-week high of $79,399 before encountering a selling wall, prompting a reversal during Asian morning trading on Monday. This move derailed the asset's potential run to $80,000, a level not seen since January.
On Monday morning, Bitcoin was trading at $77,705, representing a 0.4% decline over 24 hours. The cryptocurrency had climbed to $79,399 around 09:00 IST before sharply reversing direction during the Asia 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 point since January 31 lost momentum by mid-morning in Singapore.
The upward push was sparked 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.
Asian equities responded positively, 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 record level. Brent crude pared its earlier 2.5% gains to a 1% increase at $106.50 per barrel. Bitcoin initially followed the risk-on trend before diverging.
According to Rachael Lucas, an analyst at BTC Markets, the rejection at $79,399 can be technically explained by the fact that $80,000 is a level where many recent buyers are approaching breakeven, historically leading to selling pressure as traders exit positions they held at a loss for weeks. Bitcoin has gained 16% in April, on track for its first double-digit monthly increase since May 2025. Strategy has bought $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%, as per Coinglass, indicating that shorts are still paying longs to maintain positions.
This structural setup can lead to a squeeze if the spot price can hold 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 including the four largest U.S. companies by market capitalization, either the Fed or a single earnings beat could provide the necessary catalyst for Bitcoin's tape. Without such a catalyst, the third rejection from $79,000 in eight sessions may define the range rather than precede a breakout.