Bitcoin pulls back from 12-week high as Iran rally hits seller wall at $79,400
What to know:
- Bitcoin briefly hit a 12-week high near $79,400 before reversing in Asian trading, marking a third failed attempt to clear the $79,000 level in eight sessions.
- Analysts say the $80,000 area is a key breakeven zone for recent buyers, creating selling pressure even as bitcoin is up 16 percent in April and seeing strong institutional accumulation.
- Traders are watching this week’s Federal Reserve and European Central Bank decisions, along with megacap tech earnings, for a potential catalyst to push bitcoin out of its current range.
The push higher came on a report from Axios that Iran offered a new proposal to the US to reopen the Strait of Hormuz, with nuclear talks delayed until after the US naval blockade is lifted.
Asian equities ran with it. The MSCI Asia Pacific Index rose 1.7%, the emerging markets index hit a record, and Taiwan Semiconductor Manufacturing surged 6% to its own record. Brent crude pared earlier 2.5% gains to up 1% at $106.50 a barrel.
Bitcoin briefly traded along with the risk-on move and then peeled away. The rejection at $79,399 has a clean technical explanation. 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.
