Following a surge to a 12-week high of $79,399, Bitcoin experienced a sharp reversal during Monday's Asian morning session, as sellers intervened and derailed the asset's potential push towards $80,000. The cryptocurrency had been trading at $77,705, reflecting a 0.4% decline over 24 hours, after briefly touching $79,399.
This downturn was accompanied by declines in other major cryptocurrencies, including Ether, Solana, and BNB, which fell by 2.4%, 1.9%, and 1.2%, respectively. The initial rally, which propelled Bitcoin to its highest level since January 31, lost momentum by mid-morning in Singapore.
The catalyst for this surge was a report indicating that Iran had proposed a new initiative to the US to reopen the Strait of Hormuz, contingent upon the lifting of the US naval blockade. The resulting risk-on sentiment also lifted Asian equities, with the MSCI Asia Pacific Index rising 1.7% and Taiwan Semiconductor Manufacturing reaching a record high. However, Bitcoin's inability to sustain its upward trajectory can be attributed to technical factors.
According to Rachael Lucas, an analyst at BTC Markets, the $80,000 mark is a critical threshold where many recent buyers are approaching breakeven, historically leading to selling pressure as traders exit underwater positions. Despite this, Bitcoin remains up 16% in April, poised for its first double-digit monthly gain since May 2025. The cryptocurrency has seen significant accumulation, with strategy buying $3.9 billion worth of Bitcoin this month. Funding rates on perpetual futures across major exchanges remain negative, indicating that shorts are still paying longs to hold positions.
This setup could facilitate a squeeze if the spot price holds above the $79,000 level, which has been rejected three times. With the Federal Reserve and European Central Bank set to announce policy decisions, and major tech companies releasing their earnings, the stage is set for potential catalysts that could influence Bitcoin's trajectory.