Bitcoin prices retreated from a 12-week high on Monday after hitting a resistance wall near $79,400 during Asian trading hours. The reversal marked the third failed attempt to clear the $79,000 threshold in just eight sessions, according to coindesk.com.
After reaching a peak of $79,399 around 09:00 IST, the cryptocurrency slid to $77,705. The downturn occurred as sellers entered the market during the morning session in Asia, stalling a rally that had positioned the asset for its first run toward $80,000 since January.
Other major digital assets also saw declines. Ether dropped 2.4% to $2,329, while Solana fell 1.9% to $86 and BNB declined 1.2% to $630, the outlet reported.
Resistance at the breakeven zone
Analysts suggest the recent price rejection stems from traders seeking to exit positions at break-even points. Rachael Lucas, an analyst at BTC Markets, said $80,000 is where many recent buyers are approaching breakeven, which historically produces selling pressure as those traders rotate out of positions they were underwater on for weeks.
This selling pressure arrived despite a strong month for the cryptocurrency. Bitcoin has gained 16% in April, marking its first double-digit monthly increase since May 2025. Institutional interest remains high, with Bloomberg data showing Strategy bought $3.9 billion of bitcoin this month, representing the firm's largest monthly accumulation in a year.
The initial rally toward $79,400 was fueled by geopolitical developments. An Axios report indicated that Iran offered a new proposal to the U.S. to reopen the Strait of Hormuz, with nuclear negotiations delayed until after a U.S. naval blockade is lifted. This news lifted Asian equities, including a 6% surge in Taiwan Semiconductor Manufacturing.
Traders are now looking toward upcoming macroeconomic catalysts. Market participants are monitoring policy decisions from the Federal Reserve and the European Central Bank, alongside megacap tech earnings, to find a direction for the asset.
On a structural level, funding rates on perpetual futures remain negative at -0.13% over a 7-day period, according to Coinglass. This setup indicates that short sellers are currently paying long holders to maintain positions, a condition that could trigger a short squeeze if spot prices can stabilize above recent breakeven clusters.
