Bitcoin reached a 12-week high of $79,399 overnight before facing a sharp sell-off during the Asian morning hours on Monday. The cryptocurrency is currently trading at $77,705, reflecting a decrease of 0.4% over the past 24 hours. This price action marked a significant rally that had many speculating about a potential move toward the $80,000 threshold for the first time since January.
The sharp ascendancy to the recent peak was short-lived, as trading during the early hours in Singapore saw the momentum dissipate. Similar declines were noted in other cryptocurrencies, with Ether falling 2.4% to $2,329, Solana down 1.9% to $86, and BNB declining 1.2% to $630.
The initial surge in Bitcoin’s price can be linked to a report from Axios suggesting that Iran had proposed a new plan to the U.S. regarding the reopening of the Strait of Hormuz. This development led to optimism in Asian equities, illustrated by a 1.7% rise in the MSCI Asia Pacific Index, while emerging markets hit a record high. Major gains were noted in the technology sector, with Taiwan Semiconductor Manufacturing Company showcasing a 6% increase.
Despite Bitcoin’s initial association with this risk-on sentiment, the price faced rejection at the $79,399 level. Rachael Lucas, an analyst at BTC Markets, provided insight, suggesting that the proximity of Bitcoin to the $80,000 mark has historically created selling pressure as recent buyers emerged into profitability after being underwater for extended periods.
April has thus far been a strong month for Bitcoin, with a 16% increase in price, putting the asset on track for its first double-digit monthly gain since May 2025. Notably, a firm reportedly acquired $3.9 billion worth of Bitcoin this month, representing the largest monthly accumulation in a year.
In the derivatives market, funding rates on perpetual futures across major exchanges remain negative at -0.13% on a seven-day basis, indicating that short positions are still compensating long holders. This structural setup may create a short squeeze if Bitcoin manages to maintain its prices above recent breakeven levels.
Looking ahead, significant policy decisions from the Federal Reserve and European Central Bank are anticipated this week, alongside earnings reports from major technology firms in the U.S. Either of these events could serve as a crucial catalyst for Bitcoin’s price movements. Conversely, a third rejection near the $79,000 level in just eight trading sessions could solidify a defined trading range rather than facilitate a breakout upwards.
