Bitcoin, with the symbol BTC, reached a 12-week high of $79,399 before encountering a seller wall, prompting a reversal during Monday's Asian morning session. This move thwarted its potential run towards the $80,000 mark for the first time since January. By Monday morning, Bitcoin had fallen to $77,705, representing a 0.4% decline over 24 hours. Other cryptocurrencies like Ether, Solana, and BNB also experienced declines of 2.4%, 1.9%, and 1.2%, respectively.
The rally that had propelled Bitcoin to its highest level since January 31 lost momentum by mid-morning in Singapore. The initial surge was sparked by reports of a new Iranian proposal to the US regarding the reopening of the Strait of Hormuz, which was contingent upon the lifting of the US naval blockade.
This news led to a risk-on sentiment in Asian equities, with the MSCI Asia Pacific Index rising 1.7% and Taiwan Semiconductor Manufacturing reaching a record high. However, Bitcoin's attempt to join this rally was short-lived, as it peaked at $79,399 before sharply reversing.
According to analyst Rachael Lucas, the rejection at this level can be attributed to the fact that $80,000 marks the breakeven point for many recent buyers, historically leading to selling pressure. Despite this, Bitcoin remains up 16% in April, poised for its first double-digit monthly gain since May 2025.
The month has seen significant accumulation, with strategy buying $3.9 billion worth of Bitcoin. Funding rates on perpetual futures remain negative, indicating that shorts are still paying longs to hold positions. This setup could lead to a squeeze if Bitcoin can maintain its position above $79,000.
The upcoming week features key policy decisions from the Federal Reserve and European Central Bank, as well as earnings reports from major tech companies. These events could provide the necessary catalyst for Bitcoin's price movement, as the current rejection from the $79,000 level starts to define the range rather than precede a breakout.