Bitcoin reached a 12-week high of $79,399 before encountering a seller wall, prompting a reversal during Monday's Asian morning session. The cryptocurrency had been poised to reach $80,000 for the first time since January. By Monday morning, Bitcoin had dropped to $77,705, a 0.4% decline over 24 hours, after initially surging to $79,399.
Other major cryptocurrencies, including Ether, Solana, and BNB, also experienced declines. The rally, sparked by a report of a potential US-Iran agreement, led to a surge in Asian equities, with the MSCI Asia Pacific Index rising 1.7% and Taiwan Semiconductor Manufacturing reaching a record high. However, Bitcoin's push towards $80,000 was met with resistance, with analyst Rachael Lucas attributing the rejection at $79,399 to the approach of breakeven for many recent buyers. Despite this, Bitcoin remains up 16% in April, with strategy buyers accumulating $3.9 billion in the cryptocurrency this month.
With funding rates on perpetual futures remaining negative, the stage is set for a potential squeeze if Bitcoin can hold above $79,000. This week's Federal Reserve and European Central Bank policy decisions, as well as key tech earnings, could provide the catalyst for a breakout.