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 Asian trading hours on Monday. This move thwarted the asset's potential run to $80,000, a level not seen since January. On Monday morning, Bitcoin was valued at $77,705, representing a 0.4% decline over 24 hours, after peaking at $79,399 around 09:00 IST and subsequently retreating throughout the Asian session. Other cryptocurrencies such as Ether, Solana, and BNB also experienced declines, with losses of 2.4%, 1.9%, and 1.2%, respectively. The rally that propelled Bitcoin to its highest level since January 31 dissipated by mid-morning in Singapore. The initial upward push was attributed to a report from Axios stating that Iran had proposed a new plan to the U.S. for reopening the Strait of Hormuz, contingent upon the lifting of the U.S. naval blockade, which has delayed nuclear talks. This news sparked a surge in Asian equities, with the MSCI Asia Pacific Index rising 1.7% and the emerging markets index reaching a record high, while Taiwan Semiconductor Manufacturing saw a 6% increase to a new record. Meanwhile, Brent crude pared its earlier 2.5% gain to a 1% increase at $106.50 per barrel. Initially, Bitcoin followed the risk-on trend but then diverged. 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 point 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, poised for its first double-digit monthly gain since May 2025. Moreover, strategy bought $3.9 billion worth of Bitcoin this month, the largest monthly accumulation in a year, as per Bloomberg. The funding rates on perpetual futures across major exchanges remain negative on a 7-day basis at -0.13%, as reported by Coinglass, 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. With both 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 cap, either the Fed or a single earnings beat could provide the necessary catalyst for Bitcoin. Without such a catalyst, the third rejection from $79,000 in eight sessions may define the range rather than precede a breakout.