Bitcoin Retreats from 12-Week Peak as Sellers Intervene at $79,400

Bitcoin, trading at $78,459.12, reached a 12-week high of $79,399 before encountering selling pressure during Monday's Asian morning session, halting its ascent towards $80,000 for the first time since January. By Monday morning, Bitcoin had fallen to $77,705, marking a 0.4% decline over 24 hours, after peaking at $79,399 around 09:00 IST and subsequently reversing 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 level since January 31 lost momentum by mid-morning Singapore time. The recent surge was sparked by a report from Axios indicating that Iran had proposed a new plan to the US to reopen the Strait of Hormuz, with nuclear talks postponed until after the US 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 new record. Brent crude also pared its earlier 2.5% gains, ultimately rising 1% to $106.50 per barrel. Initially, Bitcoin followed the risk-on trend but then deviated from it. According to Rachael Lucas, an analyst at BTC Markets, the rejection at $79,399 can be explained by the fact that $80,000 is the point at which many recent buyers are approaching break-even, historically leading to selling pressure as traders exit positions that were previously unprofitable. Bitcoin has seen a 16% increase in April, putting it on track for its first double-digit monthly gain since May 2025. Strategy has acquired $3.9 billion worth of Bitcoin this month, the largest monthly accumulation in a year, as reported by Bloomberg. Funding rates for perpetual futures across major exchanges remain negative on a 7-day basis at -0.13%, indicating that shorts are still paying longs to hold positions, a structural setup that could 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 will announce their policy decisions, and the four largest US companies by market capitalization will release their earnings reports. Either the Fed's decision or a positive earnings report could provide the catalyst that 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.