Compared with the booming Bitcoin chain data, the price of BTC has a 6% correction

Bitcoin (Bitcoin) Fell below $39,000 on August 2, and traders have long predicted that this will be a necessary response to the recent rise.

BTC/USD 1-hour candlestick chart (Bitstamp). Source: TradingView

Bitcoin needs to hold a $30,000 area

Data from Cointelegraph Markets Pro and Transaction view It shows that BTC/USD hit a local low of $38,915 on Bitstamp on Monday.

After a successful weekend became less optimistic, at the beginning of the new week, Bitcoin bulls saw mixed activity face With the prospect of a new FUD for regulators.

For Cointelegraph writer Michaël van de Poppe, the downfall is not only possible, but necessary.

“Considering our vertical movement, it would be very surprising if we continue to move towards $48,000, because this is the next point of interest,” he explained in a new explanation. YouTube updates.

Van de Poppe pointed out that the rise of low volume to local highs above $42,500 has exacerbated the argument that this level constitutes a “fake”.

He added that if the downtrend is more convincing, $38,500 has formed a potential rebound area, and the area between $34,800 and $36,000 is crucial as support.

At the time of writing, BTC/USD has rebounded to above 39,000 USD, but has still fallen by approximately 5.6% in the past 24 hours.

On-chain digital “retroactive dump”

Although the transaction volume supporting the bullish rise is still low, at the same time, on-chain data shows that the entire Bitcoin entity is recovering to form.

related: The 5 most noteworthy cryptocurrencies this week: BTC, UNI, LINK, SOL, XMR

As famous Lex Moskovski, Chief Investment Officer of Moskovski Capital, said that the average number of Bitcoin network entities active each week has returned to the level before the BTC price drop in May.

7-day moving average chart of active Bitcoin entities. Source: Lex Moskovski/Twitter

As Moskovsky said, this is not the only indicator of “clearing dumps”-strong control over the supply of BTC is also Strong rebound, Illiquid supply hit a record high.

The other good news is that with the beginning of August, the entire realized cap of Bitcoin has increased again, and PlanB, the creator of the inventory-to-flow model, believes this is a bullish event.

As Cointelegraph ReportLast June, the upper limit was reached, reversing the losses caused by the March coronavirus crash and continuing to release the current bull market.