Bitcoin's Profitability Surge Faces Crucial Test at $83K

Bitcoin's recent price surge has led to an increase in profitability for its early buyers, but the cryptocurrency still needs to recapture a key level of $83,000 to confirm a shift in its market structure.

The Bull Score index, which tracks various metrics such as spot demand and futures activity, jumped from 30 to 80 over the past week. This sudden change suggests that participation is growing alongside price, rather than relying solely on leverage.

Historically, similar transitions have appeared in 2019 and March 2023, but both periods still experienced corrections of 15%, 25% during broader advances. In contrast, Bitcoin's current rebound has been supported by other metrics, including holder profitability.

The Short Term Holder (STH) profitability changed from a loss of around 7% to a profit greater than 11%, reducing some of the selling pressure recently experienced by recent buyers.