Bitcoin, with the symbol BTC, reached a 12-week high of $79,399 during overnight trading before encountering selling pressure in the Asian morning session on Monday, which halted the rally that had positioned the asset for a potential break to $80,000 for the first time since January. On Monday morning, Bitcoin was trading at $77,705, reflecting a 0.4% decline over the past 24 hours, after it had surged to $79,399 around 09:00 IST and then sharply reversed course during the Asian session. Meanwhile, Ether dropped 2.4% to $2,329, Solana decreased 1.9% to $86, and BNB fell 1.2% to $630.

The rally that propelled Bitcoin to its highest level since January 31 lost momentum by mid-morning Singapore time. The upward push was triggered by a report from Axios stating that Iran had presented a new proposal to the U.S. aimed at reopening the Strait of Hormuz, with nuclear talks postponed 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 a new record. 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 nearing breakeven, a point that historically leads to selling pressure as traders exit positions they had been holding at a loss for weeks. This month, Bitcoin has seen a 16% increase, 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, as reported by Bloomberg, marking the firm's largest monthly accumulation in a year.

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 maintain positions. This structural setup can lead to a squeeze if the spot price can hold above the $79,000 level, which has now been rejected three times. Both the Federal Reserve and the European Central Bank are set to make policy decisions this week, and the earnings reports of the four largest U.S.

companies by market cap are also scheduled. Either the Fed's decision or a strong earnings report could provide the catalyst that the Bitcoin market 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.