Bitcoin (BTC) dipped beneath $39,000 on Aug. two in what traders had long predicted would be a necessary reaction to recent gains.

BTC/USD one-hour candle chart (Bitstamp). Source: TradingView

Bitcoin needs to agree mid-$30,000 zone

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD hitting local lows of $38,915 on Bitstamp Monday.

Later on a successful weekend turned less optimistic, the start of the new week saw mixed activity every bit Bitcoin bulls faced off with the prospect of fresh FUD from regulators.

For Cointelegraph contributor Michaël van de Poppe, a comedown was still not just likely, but necessary.

"Given the vertical move that we've had, it would be very surprising if we simply continued moving towards $48,000, as that is the adjacent bespeak of interest," he explained in a fresh YouTube update.

Van de Poppe noted that low volumes on the rise to local highs above $42,500 fuelled the argument that such levels constituted a "fakeout."

Should downside accept hold more than convincingly, $38,500 has formed a potential bounciness zone, with the surface area between $34,800 and $36,000 critical to hold as support, he added.

At the time of writing, BTC/USD was back above $39,000, still down around 5.6% over the past 24 hours.

On-concatenation numbers "retrace the dump"

Despite volumes remaining low for supporting a bullish advance, meanwhile, on-concatenation data showed a return to form among Bitcoin entities at big.

Related: Top five cryptocurrencies to watch this week: BTC, UNI, LINK, SOL, XMR

As noted by Lex Moskovski, principal investment officeholder of Moskovski Capital, boilerplate weekly agile Bitcoin network entity numbers were dorsum at levels last seen before the May BTC price drop.

Bitcoin active entities seven-day moving average nautical chart. Source: Lex Moskovski/Twitter

It's not the merely metric to accept "erased the dump," as Moskovski called it — stiff hodler command of the BTC supply has as well rebounded strongly, with illiquid supply hitting all-fourth dimension highs.

In boosted good news, the unabridged realized cap of Bitcoin was growing over again as Baronial began, something stock-to-flow model creator PlanB suggested was a bullish event.

Equally Cointelegraph reported, in June last year, realized cap reversed losses caused by the March coronavirus crash, going on to unleash the current bull market.