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 resistance from sellers during Monday's Asian morning session, thereby halting its ascent towards the $80,000 mark for the first time since January. On Monday morning, Bitcoin was valued at $77,705, representing a 0.4% decrease over the past 24 hours, after peaking at $79,399 around 09:00 IST and subsequently experiencing a sharp decline throughout the Asian session. Meanwhile, Ether declined by 2.4% to $2,329, Solana fell 1.9% to $86, and BNB decreased by 1.2% to $630. The upward momentum that propelled Bitcoin to its highest level since January 31 dissipated by mid-morning Singapore time. This surge was triggered by a report from Axios stating that Iran had presented a new proposal to the U.S. aimed at reopening the Strait of Hormuz, with nuclear negotiations delayed until after the U.S. naval blockade is lifted. Asian equities responded positively to the news, with the MSCI Asia Pacific Index rising 1.7%, the emerging markets index reaching a record high, and Taiwan Semiconductor Manufacturing surging 6% to achieve its own record. Brent crude oil prices initially rose 2.5% but later pared their gains to a 1% increase, reaching $106.50 per barrel. Bitcoin initially followed the risk-on trend but then diverged. The rejection at $79,399 can be technically explained. According to Rachael Lucas, an analyst at BTC Markets, the $80,000 mark is where many recent buyers are approaching break-even, which historically leads to selling pressure as traders exit positions they held at a loss for weeks. This month, Bitcoin has seen a 16% increase, putting it on track for its first double-digit monthly gain since May 2025. Strategy has purchased $3.9 billion worth of Bitcoin this month, as reported by Bloomberg, marking the firm's largest monthly accumulation in a year. The funding rates for perpetual futures across major exchanges remain negative on a 7-day basis, at -0.13% per Coinglass, indicating that shorts are still paying longs to maintain their 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. The Federal Reserve and European Central Bank are both scheduled to make policy decisions this week, and the earnings reports of the four largest U.S. companies by market capitalization are also expected. Either the Fed's decision or a strong earnings report could provide the catalyst that the Bitcoin market has been lacking. Without such a catalyst, the third rejection from the $79,000 level in eight sessions may define the range rather than precede a breakout.