- Bitcoin has reclaimed the STH cost basis, a pivotal level often defining near-term trend direction.
- A bullish continuation above $93k remains likely.
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.
Despite this, whale accumulation persisted, driven by macroeconomic turbulence and a shift in risk appetite.
This strategic influx of capital catalyzed a bullish rally, breaking through two key supply zones and triggering a liquidation cascade of leveraged positions.
Bitcoin now trades at $93,700, representing a 14% rebound from its March close.
Notably, BTC has surpassed its STH cost basis for the first time since mid-February, marking a pivotal shift in market structure and sentiment.
Source: Glassnode
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, effectively reclaiming a key overhead resistance level that has remained untested for over a month.
Its impact? Short-term holders (STHs) flipped into profit territory after over a month of their realized price sitting below BTC’s market valuation, keeping them in an underwater position.
This resurgence signals a strong bullish continuation. Why? It serves as a critical FOMO trigger.
If Bitcoin maintains its momentum, short-term investors are likely to HODL for outsized returns. Hence, 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, reinforcing AMBCrypto’s thesis of bullish continuation.
Source: CryptoQuant
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.
