Bitcoin's [BTC] 13% Q1 decline was primarily driven by a sharp 18% drawdown in February, initiating a significant market correction.

Consequently, in March, the short-term holder (STH) capitulation phase dominated, leading to a spike in realized losses, which pushed BTC to its lowest point at $77,000.

Bitcoin's 13% decline in Q1 was largely driven by a sharp 18% drawdown in February, which started a significant market correction from prior highs.

This had implications for short-term holder (STH) capitulation phases, which were largely realized in March as realized losses spiked and pushed BTC to lows of $77,000.

However, despite this downturn, whale accumulation persisted, fueled by macroeconomic turbulence and a shift in risk appetite.

This strategic influx of capital catalyzed a bullish rally that saw Bitcoin break through two key supply zones, leading to a liquidation cascade of leveraged positions.

Bitcoin is currently trading at $93,700, marking a 14% rebound from its March close and showing no signs of slowing down.

More importantly, BTC has flipped above its STH cost basis for the first time since mid-February, highlighting a pivotal shift in market structure and sentiment.

Bitcoin flips above STH realized price: Key reversal signal

Bitcoin posted a 6.82% single-day gain on the 22nd of April, closing at $93,489, which saw it finally slice through a key overhead resistance level that had remained largely untested for over a month.

Its implication? It flipped short-term holders (STHs) into profit territory after over a month of their realized price sitting below BTC's market valuation, leaving them in an “underwater” position.

This resurgence signals a strong bullish continuation. Why? It serves as a critical FOMO trigger.

If Bitcoin manages to maintain its momentum, short-term investors are likely to continue holding on for outsized returns, viewing the move as a "reward" for their resilience during the March sell-offs.

In fact, at $93,986, 11.72k BTC were bought— the highest in the month. This marks a significant shift with strong outflows into wallets, further reinforcing AMBCrypto's thesis of bullish continuation.

With increased whale participation and the reversal of STHs into profit, Bitcoin's market structure has shifted decisively.

The path of least resistance now points toward further bullish price discovery, with a potential for continuation into higher resistance zones.