Bitcoin (BTC) attempted to challenge the $80,000 resistance on Monday, but the bullish momentum didn’t last long. As geopolitical tensions stirred market nerves again, the price retraced during U.S. trading hours, falling back to the $76,600 level.

Bitcoin previously soared close to $80,000, marking the highest record since early February this year. However, the rally reversed, with a drop of about 2.5% over the past 24 hours. Major altcoins followed suit, with Ethereum (ETH), XRP, and Solana (SOL) all experiencing declines around 4%.

Geopolitical shadows and oil price trends

This pullback mainly reflects investor caution regarding the prospects of negotiations between the U.S. and Iran, as well as the situation in the Strait of Hormuz, one of the world's most critical oil transport routes.

According to a report from the Wall Street Journal, Iran has proposed to cease attacks on ships in the Strait in exchange for a comprehensive ceasefire, including demands for the U.S. to lift its naval blockade and delay nuclear negotiations. Although the proposal aims to restart stalled discussions, uncertainty in negotiations continues to loom over the market following President Trump's abrupt cancellation of a special envoy's trip to Pakistan on Saturday.

International crude oil prices continue to rise due to risk-off sentiment and supply concerns. Brent crude is up over 3% to $107 per barrel; West Texas Intermediate (WTI) has risen 2.6% to $97.

U.S. stock performance and crypto concept stocks

In the U.S. stock market, the NASDAQ is down slightly by 0.3% in early trading, making a minor correction from its all-time highs; the S&P 500 remains flat, while crypto-related stocks are taking a hit:

• Coinbase (COIN): down 1.5%

• Circle (CRCL) (USDC issuer): down 3.5%

• Galaxy Digital (GLXY): plummeting nearly 6%

The market is bracing for this week's 'earnings week,' during which tech giants like Alphabet, Meta, Microsoft, and Apple will sequentially release their performance results.

Short-term holders are cashing out, and market momentum is stalling.

Despite surface-level volatility, Bitcoin's trend indicates that the market, though supported by strong institutional demand, is still struggling to gather upward momentum.

Bitfinex analysts note that short-term holders with profit potential are taking advantage of the situation to sell off and lock in profits, and this selling pressure is offsetting new buying from spot ETFs and MicroStrategy.

Analysts believe, 'The path of least resistance in the short term may be sideways consolidation or a retest of the $75,000 range,' emphasizing that Bitcoin must break out strongly and hold above $80,000 to confirm the start of a more robust bull market.

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