Following a surge to a 12-week high of $79,399, bitcoin experienced a sharp reversal during Monday's Asian morning session, as sellers stepped in to impede the asset's path to $80,000. By Monday morning, bitcoin had dropped to $77,705, marking a 0.4% decline over 24 hours. This downturn occurred after the cryptocurrency had briefly reached $79,399 around 09:00 IST, before losing momentum throughout the Asia session.

Other major cryptocurrencies also saw declines, with Ether slipping 2.4% to $2,329, Solana falling 1.9% to $86, and BNB declining 1.2% to $630. The rally that had propelled bitcoin to its highest level since January 31 lost steam by mid-morning Singapore time. The initial push higher was 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 delayed until after the U.S. naval blockade is lifted. This news sparked a risk-on move in Asian equities, with the MSCI Asia Pacific Index rising 1.7%, the emerging markets index reaching a record high, and Taiwan Semiconductor Manufacturing surging 6% to a new record. However, bitcoin's attempt to join this rally was short-lived, as it peeled away from the risk-on move.

According to Rachael Lucas, an analyst at BTC Markets, the rejection at $79,399 can be attributed to the fact that $80,000 is a key level where many recent buyers are approaching breakeven, historically leading to selling pressure as traders rotate out of underwater positions. Despite this setback, bitcoin remains up 16% in April, on track for its first double-digit monthly gain since May 2025. Notably, strategy bought $3.9 billion of bitcoin this month, the largest monthly accumulation in a year, according to Bloomberg.

Funding rates on perpetual futures across major exchanges remain negative on a 7-day basis at -0.13%, indicating that shorts are still paying longs to hold positions. This structural setup could produce a squeeze if spot prices 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 on the horizon, including the four largest U.S.

companies by market cap, either the Fed or a single earnings beat could provide the catalyst the bitcoin market has been missing. Without such a catalyst, the third rejection from $79,000 in eight sessions may define the range rather than precede a breakout.