Following a surge to a 12-week high of $79,399, bitcoin experienced a sharp reversal during Monday's Asian morning session as sellers intervened, halting the asset's potential push towards $80,000 for the first time since January. By Monday morning, bitcoin had declined 0.4% over 24 hours to $77,705, after reaching $79,399 around 09:00 IST, with other major cryptocurrencies such as Ether, Solana, and BNB also posting losses.
The rally, sparked by a report of a new Iranian proposal to the US regarding the reopening of the Strait of Hormuz, had lifted bitcoin to its highest level since January 31, but was short-lived. Asian equities, including the MSCI Asia Pacific Index and Taiwan Semiconductor Manufacturing, had also risen in response to the news, while Brent crude pared earlier gains to register a 1% increase. The rejection of bitcoin at $79,399 has been attributed to technical factors, with analyst Rachael Lucas noting that $80,000 marks a crucial breakeven point for many recent buyers, historically leading to selling pressure. Despite the setback, bitcoin remains up 16% in April, on track for its first double-digit monthly gain since May 2025, with strategy funds accumulating $3.9 billion in bitcoin this month.
With funding rates on perpetual futures remaining negative and major policy decisions from the Federal Reserve and European Central Bank, as well as key tech earnings, on the horizon, the bitcoin market awaits a potential catalyst to break through the $79,000 resistance level.