Detecting state changes made to the BluetoothAdapter?

You will want to register a BroadcastReceiver to listen for any changes in the state of the BluetoothAdapter:

As a private instance variable in your Activity (or in a separate class file… whichever one you prefer):

private final BroadcastReceiver mReceiver = new BroadcastReceiver() {
    @Override
    public void onReceive(Context context, Intent intent) {
        final String action = intent.getAction();

        if (action.equals(BluetoothAdapter.ACTION_STATE_CHANGED)) {
            final int state = intent.getIntExtra(BluetoothAdapter.EXTRA_STATE,
                                                 BluetoothAdapter.ERROR);
            switch (state) {
            case BluetoothAdapter.STATE_OFF:
                setButtonText("Bluetooth off");
                break;
            case BluetoothAdapter.STATE_TURNING_OFF:
                setButtonText("Turning Bluetooth off...");
                break;
            case BluetoothAdapter.STATE_ON:
                setButtonText("Bluetooth on");
                break;
            case BluetoothAdapter.STATE_TURNING_ON:
                setButtonText("Turning Bluetooth on...");
                break;
            }
        }
    }
};

Note that this assumes that your Activity implements a method setButtonText(String text) that will change the Button‘s text accordingly.

And then in your Activity, register and unregister the BroadcastReceiver as follows,

@Override
public void onCreate(Bundle savedInstanceState) {
    super.onCreate(savedInstanceState);

    /* ... */

    // Register for broadcasts on BluetoothAdapter state change
    IntentFilter filter = new IntentFilter(BluetoothAdapter.ACTION_STATE_CHANGED);
    registerReceiver(mReceiver, filter);
}

@Override
public void onDestroy() {
    super.onDestroy();

    /* ... */

    // Unregister broadcast listeners
    unregisterReceiver(mReceiver);
}