Bitcoin, with the symbol BTC, reached a 12-week high of $79,399 during overnight trading before encountering a selling wall, leading to a sharp reversal in the Asian morning session on Monday. This move thwarted the asset's potential run towards the $80,000 mark for the first time since January.
By Monday morning, Bitcoin's price stood at $77,705, representing a 0.4% decline over 24 hours. The cryptocurrency had briefly touched $79,399 around 09:00 IST before reversing its course. Other major cryptocurrencies also experienced declines, with Ether dropping 2.4% to $2,329, Solana falling 1.9% to $86, and BNB decreasing 1.2% to $630. The rally that propelled Bitcoin to its highest level since January 31 lost momentum by mid-morning Singapore time.
The surge was initially driven by a report from Axios indicating that Iran had proposed a new plan to the U.S. to reopen the Strait of Hormuz, with nuclear talks postponed 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% and the emerging markets index reaching a record high.
Taiwan Semiconductor Manufacturing saw a significant surge of 6% to reach its own record. Meanwhile, Brent crude pared its earlier 2.5% gains to end up 1% at $106.50 a barrel. Bitcoin initially followed the risk-on trend but then deviated from it. 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 breakeven, historically leading to selling pressure as traders exit positions they had been holding at a loss for weeks. 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, the largest monthly accumulation in a year, as per Bloomberg.
Funding rates on 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 could lead to a squeeze if the spot price can hold above the $79,000 level, which has now been rejected three times.
With the Federal Reserve and European Central Bank set to make policy decisions this week, and megacap tech earnings, including the four largest U.S. companies by market cap, either the Fed or a single earnings beat could provide the necessary catalyst for Bitcoin. Without such a catalyst, the third rejection from $79,000 in eight sessions may define the range rather than precede a breakout.