Bitcoin, with the symbol BTC, reached a 12-week high of $79,399 before encountering a selling barrier, resulting in a sharp reversal during Monday's Asian morning session. This occurred after the asset had been poised to reach $80,000 for the first time since January. On Monday morning, Bitcoin was trading at $77,705, representing a 0.4% decline over 24 hours. The decline followed a brief surge to $79,399 around 09:00 IST, after which the price dropped sharply throughout the Asian session.
Other cryptocurrencies, such as Ether, Solana, and BNB, also experienced declines of 2.4%, 1.9%, and 1.2%, respectively, with values of $2,329, $86, and $630. The rally that had propelled Bitcoin to its highest level since January 31 lost momentum by mid-morning in Singapore. The initial upward push was attributed to a report from Axios regarding Iran's proposal to the U.S. to reopen the Strait of Hormuz, which was contingent upon the lifting of the U.S.
naval blockade and the resumption of nuclear talks. This development led to a surge in Asian equities, with the MSCI Asia Pacific Index rising by 1.7% and the emerging markets index reaching a record high. Additionally, Taiwan Semiconductor Manufacturing experienced a 6% increase, reaching its own record.
Meanwhile, Brent crude pared its earlier 2.5% gains to achieve a 1% increase at $106.50 per barrel. Initially, Bitcoin moved in tandem with the risk-on sentiment but later diverged. The rejection at $79,399 can be explained by technical factors.
According to Rachael Lucas, an analyst at BTC Markets, the $80,000 mark is where many recent buyers are approaching breakeven, which historically leads to selling pressure as traders exit positions that were previously underwater. Bitcoin has seen a 16% increase in April, 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, marking the firm's 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% according to Coinglass, indicating that shorts are still paying longs to hold positions.
This structural setup can lead to a squeeze if the spot price can maintain its position above the $79,000 level, which has been rejected three times. This week, the Federal Reserve and European Central Bank are scheduled to make policy decisions, and the earnings reports of the four largest U.S. companies by market capitalization are also anticipated. Either the Fed's decision or a strong earnings report could provide the necessary catalyst for Bitcoin's price movement, which has been lacking.
Without such a catalyst, the third rejection from the $79,000 level in eight sessions may define the trading range rather than precede a breakout.