Following 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 ascent to $80,000 for the first time since January. At $77,705 on Monday morning, Bitcoin's value had decreased by 0.4% over 24 hours.
The decline was accompanied by a 2.4% drop in Ether to $2,329, a 1.9% decrease in Solana to $86, and a 1.2% decline in BNB to $630. This downturn occurred after Bitcoin reached its highest level since January 31, only to unwind by mid-morning in Singapore. The initial surge was sparked by a report from Axios, which stated 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. In response, Asian equities rose, with the MSCI Asia Pacific Index increasing by 1.7%, the emerging markets index reaching a record high, and Taiwan Semiconductor Manufacturing surging 6% to a new record.
Meanwhile, Brent crude pared its earlier gains of 2.5% to a 1% increase at $106.50 per barrel. Bitcoin initially 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 attributed to the fact that many recent buyers are approaching breakeven at $80,000, which historically leads to selling pressure as traders exit positions that were previously underwater. Despite this, Bitcoin has seen a 16% increase in April, putting it on track for its first double-digit monthly gain since May 2025.
Additionally, Strategy has purchased $3.9 billion worth of Bitcoin this month, marking the firm's largest monthly accumulation in a year. With funding rates on perpetual futures remaining negative across major exchanges, the stage is set for a potential squeeze if spot prices can hold above the $79,000 level. This week, the Federal Reserve and European Central Bank are expected to announce policy decisions, while the four largest US companies by market capitalization will release their earnings reports, potentially providing the catalyst needed to propel Bitcoin forward.