Bitcoin Recovery Gains Momentum, But $84,000 Resistance Looms

Bitcoin has demonstrated a strong recovery, climbing toward the $78,000 level and marking a gain of more than 26% from its multi-year low of under $60,000 recorded on February 6. Market analysts suggest that this price action, supported by key on-chain indicators, signals the beginning of a genuine uptrend for the digital asset. The Spent Output Profit Ratio (SOPR) recently reached an eight-month peak of 2.87, recovering from a February low of 0.62. Historically, the SOPR has served as a reliable indicator for identifying short-term bottoms. Complementing this, the Net Unrealized Profit/Loss (NUPL) has flipped positive for the first time since early January, a structural shift often seen at the onset of previous bull markets. Despite the bullish momentum, a significant ceiling is expected around $84,000. Data indicates that approximately 1.1 million BTC are held at an average cost basis of $84,000, suggesting a high probability of break-even selling. Additionally, the US spot Bitcoin ETF cost basis sits near $83,100, creating another layer of resistance. Traders are closely watching the $76,000 to $78,000 range. A sustained close above this zone would confirm buyer dominance and likely clear the path toward the $84,000 target, which also coincides with a CME gap created in early February.