Bitcoin reached a 12-week high of $79,399 early Monday before experiencing a significant pullback as sellers entered the market during the Asian trading hours. By Monday morning, the cryptocurrency was trading at $77,705, reflecting a 0.4% decrease over the previous 24 hours.
This surge was initially fueled by geopolitical developments, specifically a report indicating that Iran had proposed a new plan to the United States regarding the reopening of the Strait of Hormuz. This news coincided with a broader market rally, leading to a 1.7% increase in the MSCI Asia Pacific Index and record highs for the emerging markets index.
Despite the upward momentum, Bitcoin’s rally faltered as it approached the $80,000 mark, a psychological threshold that has historically prompted selling pressure. Rachael Lucas, an analyst at BTC Markets, noted that many recent buyers are nearing their breakeven point at this level, which often leads to profit-taking.
In addition to Bitcoin, other cryptocurrencies also faced declines, with Ether dropping 2.4% to $2,329, Solana decreasing by 1.9% to $86, and BNB falling 1.2% to $630. The overall market sentiment shifted as Bitcoin’s earlier gains unwound by mid-morning in Singapore.
April has been a positive month for Bitcoin, with the asset up 16%, marking its first double-digit monthly gain since May 2025. According to Bloomberg, Strategy has accumulated $3.9 billion worth of Bitcoin this month, representing the firm’s largest monthly acquisition in a year.
Funding rates on perpetual futures across major exchanges remain negative, indicating that short sellers are paying long holders to maintain their positions. This structural setup could lead to a short squeeze if Bitcoin can sustain its price above recent breakeven levels.
This week is crucial for market watchers, as both the Federal Reserve and the European Central Bank are expected to announce policy decisions. Additionally, earnings reports from major technology companies could serve as a catalyst for further price movements in Bitcoin.
As traders continue to navigate the market, the recent rejection at $79,399 marks the third time Bitcoin has faced resistance at this level in eight sessions, raising questions about whether this range will define the market’s trajectory rather than lead to a breakout.
Recent trends indicate that large traders on Hyperliquid have shifted from net short to their most aggressive net-long positions in Bitcoin since early March, aligning with the cryptocurrency’s climb from the mid-$60,000s to near $80,000. This group, typically holding positions above $10 million, has historically influenced spot Bitcoin movements.
Bitcoin's recent surge to a 12-week high was halted by selling pressure as it approached the $80,000 mark. Geopolitical developments and upcoming financial announcements are shaping market dynamics.