Bitcoin reached a 12-week high of $79,399 before encountering selling pressure during Asian morning hours on Monday, halting its rally towards the $80,000 mark for the first time since January. The asset was trading at $77,705 on Monday morning, representing a 0.4% decline over 24 hours, after peaking at $79,399 around 09:00 IST and then sharply reversing during the Asia session.

Other major cryptocurrencies also experienced declines, with Ether dropping 2.4% to $2,329, Solana falling 1.9% to $86, and BNB declining 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 that Iran had proposed a new plan to the U.S. to reopen the Strait of Hormuz, with nuclear talks delayed until after the U.S. 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 its own record. Brent crude also pared earlier gains, ending up 1% at $106.50 a barrel. Bitcoin initially traded in tandem with the risk-on move but then diverged. The rejection at $79,399 can be attributed to technical factors, as many recent buyers are approaching breakeven at the $80,000 mark, historically leading to selling pressure as traders exit positions that were previously underwater.

Despite this, bitcoin is up 16% in April, on track for its first double-digit monthly gain since May 2025, with Strategy purchasing $3.9 billion of bitcoin this month, the largest monthly accumulation in a year. Funding rates on perpetual futures across major exchanges remain negative, indicating that shorts are still paying longs to hold positions, setting the stage for a potential squeeze if spot prices can hold above the $79,000 level that has been rejected three times.

With the Federal Reserve and European Central Bank set to make policy decisions this week, and megacap tech earnings on the horizon, either the Fed or a single earnings beat could provide the catalyst the bitcoin market has been missing, otherwise, the third rejection from $79,000 in eight sessions may define the range rather than precede a breakout.