Bitcoin surged to a 12-week high of $79,399 overnight, but sellers emerged during Asian trading hours, halting a rally that aimed for the $80,000 mark. The cryptocurrency was trading at $77,705 Monday morning.
The rally was initially fueled by news of a potential new proposal from Iran to the US regarding the Strait of Hormuz. This news boosted Asian equities, with the MSCI Asia Pacific Index rising 1.7% and Taiwan Semiconductor Manufacturing hitting a record high.
Analysts suggest that $80,000 represents a breakeven point for many recent buyers, leading to selling pressure as these traders exit positions. Bitcoin has gained 16% in April, marking its first double-digit monthly increase since May 2025.
Negative funding rates on perpetual futures indicate that short-sellers are paying longs, a structure that could lead to a squeeze if spot prices hold. Upcoming Federal Reserve and European Central Bank policy decisions, along with major tech earnings, could provide the catalyst for Bitcoin's next move. A failure to break above $79,000 after multiple attempts could establish a trading range.