Bitcoin dips from 12-week peak as Iran rally hits a seller wall around $79,400

Bitcoin (BTC) climbed to a 12-week high of $79,399 before facing firm resistance, reversing lower during Monday’s Asian session and stalling just below the $80,000 level.

The cryptocurrency was trading at $77,705, down 0.4% over the past 24 hours, after peaking around 09:00 IST and quickly retracing. The pullback extended across the broader market, with Ether falling 2.4% to $2,329, Solana down 1.9% to $86, and BNB slipping 1.2% to $630. The decline erased much of the momentum that had lifted bitcoin to its highest level since January 31.

The rally was initially driven by geopolitical developments, following a report from Axios that Iran had proposed reopening the Strait of Hormuz in discussions with the United States. However, nuclear negotiations remain delayed pending the removal of a U.S. naval blockade.

Asian markets reacted positively to the news. The MSCI Asia Pacific Index rose 1.7%, emerging market equities reached record highs, and Taiwan Semiconductor Manufacturing surged 6% to a fresh peak. Brent crude, which had gained as much as 2.5%, pared its advance to trade up 1% at $106.50 per barrel.

Bitcoin briefly moved in tandem with the broader risk-on sentiment before diverging, as selling pressure intensified near $79,400. The $80,000 region is widely viewed as a key supply zone, where many recent buyers are nearing breakeven — a dynamic that typically leads to increased selling as positions are unwound.

Despite the rejection, bitcoin remains up 16% in April, putting it on track for its strongest monthly performance since May 2025. Institutional demand continues to support the market, with Strategy reportedly purchasing $3.9 billion worth of bitcoin this month, marking its largest accumulation in a year, according to Bloomberg.

Positioning in derivatives markets suggests underlying tension. Funding rates for perpetual futures remain negative at -0.13% on a seven-day basis, according to Coinglass, indicating that short positions still dominate. This setup could create conditions for a short squeeze if bitcoin is able to reclaim the $79,000 level, which has now acted as resistance multiple times.

Looking ahead, traders are focused on macro catalysts, including upcoming policy decisions from the Federal Reserve and the European Central Bank, as well as earnings from major U.S. technology companies.

In the absence of a strong catalyst, bitcoin’s repeated rejection near $79,000 in recent sessions points to range-bound trading rather than an imminent breakout above $80,000.

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