Bitcoin reached a 12-week high of $79,399 before experiencing a sharp reversal during Asian morning hours on Monday, as sellers intervened and halted the asset's ascent towards $80,000 for the first time since January. At the time of writing, Bitcoin was trading at $77,705, representing a 0.4% decline over the past 24 hours.
This downturn occurred after the cryptocurrency had climbed to $79,399 around 09:00 IST and subsequently plummeted throughout the Asia session. Other notable cryptocurrencies, such as Ether, Solana, and BNB, also experienced declines of 2.4%, 1.9%, and 1.2%, respectively. The rally that propelled Bitcoin to its highest level since January 31 lost momentum by mid-morning Singapore time.
The initial surge was triggered by a report from Axios, which stated that Iran had proposed a new plan to the US to reopen the Strait of Hormuz, with nuclear talks postponed until after the US 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 also achieved a record high, surging 6%.
However, Bitcoin's brief alignment with the risk-on move was short-lived, as it eventually deviated from the trend. 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 critical level where many recent buyers are nearing breakeven, historically resulting in selling pressure as traders exit positions that were previously unprofitable. Despite this, Bitcoin has experienced 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.
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 lead to a squeeze if the spot price can maintain its position above the $79,000 level, which has now been rejected three times. The Federal Reserve and European Central Bank are scheduled to make policy decisions this week, and the earnings reports of the four largest US companies by market capitalization are also expected.
Either the Fed's decision or a single earnings beat could provide the catalyst that the Bitcoin market has been lacking. Without such a catalyst, the third rejection from $79,000 in eight sessions may define the range rather than precede a breakout.