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 <h2 id="bitcoin-faces-rectangle-pattern-breakout">Bitcoin Faces Rectangle Pattern Breakout</h2> 
 <p>The technical outlook on the four-hour chart shows the formation of a rectangle pattern that could implode, leaving&nbsp;<a rel="noopener noreferrer nofollow" title="Bitcoin" href="https://thebittimes.com/tag/bitcoin.html">Bitcoin</a>&nbsp;vulnerable to losses. This bearish pattern allows traders to identify breakouts and profit from downtrends in <a rel="noopener noreferrer nofollow" title="BTC price" href="https://thebittimes.com/tag/btc-price.html">BTC price</a>.</p>  
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 <p>It occurs when the price moves sideways between two parallel horizontal <a rel="noopener noreferrer nofollow" title="lines" href="https://thebittimes.com/tag/lines.html">lines</a>, forming a rectangular shape.</p> 
 <p>This formation implies that the sellers and buyers are in a temporary balance, and the price is consolidating (between $28,800 and $30,200) before resuming its downward direction.</p> 
 <figure id="attachment_156687" aria-describedby="caption-attachment-156687" style="width: 100%" class="wp-caption aligncenter"> 
  <img decoding="async" class="size-full wp-image-156687" src="data:image/svg+xml,%3Csvg%20xmlns='//www.w3.org/2000/svg'%20viewBox='0%200%201144%20611'%3E%3C/svg%3E" alt="Bitcoin price holds rectangle support at $28,800" width="1144" height="611" data-lazy-src="https://cdn.coingape.com/wp-content/uploads/2023/08/16141344/BTCUSD_2023-08-16_11-01-47.png"> 
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   <img decoding="async" class="size-full wp-image-156687" src="https://cdn.coingape.com/wp-content/uploads/2023/08/16141344/BTCUSD_2023-08-16_11-01-47.png" alt="Bitcoin price holds rectangle support at $28,800" width="1144" height="611"> 
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  <figcaption id="caption-attachment-156687" class="wp-caption-text">
    BTC/USD daily chart | Tradingview 
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 </figure> 
 <p>To trade the bearish rectangle pattern, traders look for a breakout below the lower support line at $28,800, which signals that the sellers have gained the upper hand and are ready to push the price lower.</p>  
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 </div> 
 <p>A short entry can be placed after the breakout, with a stop loss above the resistance line and a profit target based on the height of the rectangle, in this case -4.64% to $27,469.</p> 
 <p>Validating the weakening market structure is the Moving Average Convergence Divergence (MACD) indicator, which currently dons a sell signal. This call to traders to seek short positions in BTC manifested with the MACD line in blue crossing below the signal line in red.</p> 
 <p>Besides, the momentum indicator holds below the mean line (0.00) indicating that sellers have the upper hand.</p> 
 <p>According to&nbsp;on-chain analytics firm Glassnode, “the digital asset market continues trading within a historically low volatility regime, with several metrics indicating extreme apathy and exhaustion has been reached in the $29k to $30k range.”</p> 
 <figure id="attachment_156688" aria-describedby="caption-attachment-156688" style="width: 100%" class="wp-caption aligncenter"> 
  <img decoding="async" class="size-full wp-image-156688" src="data:image/svg+xml,%3Csvg%20xmlns='//www.w3.org/2000/svg'%20viewBox='0%200%20680%20428'%3E%3C/svg%3E" alt="Bitcoin Realized vs. Market-Price" width="680" height="428" data-lazy-src="https://cdn.coingape.com/wp-content/uploads/2023/08/16141651/Realized-vs.-Market-Price1.jpg"> 
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   <img decoding="async" class="size-full wp-image-156688" src="https://cdn.coingape.com/wp-content/uploads/2023/08/16141651/Realized-vs.-Market-Price1.jpg" alt="Bitcoin Realized vs. Market-Price" width="680" height="428"> 
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  <figcaption id="caption-attachment-156688" class="wp-caption-text">
    Bitcoin Realized vs. Market-Price | Glassnode 
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 </figure>  
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 <p>Based on the latest insights from Glassnode, “the Realized Cap is climbing, but only very slightly, suggesting a very boring, choppy, sideways market may remain on the road ahead,” with attributed to the dwindling market volatility.</p> 
 <h2 id="how-to-navigate-bitcoin-s-weakening-market-structure">How To Navigate Bitcoin’s Weakening Market Structure?</h2> 
 <p><a rel="noopener noreferrer nofollow" title="Bitcoin" href="https://thebittimes.com/tag/bitcoin.html">Bitcoin</a> has failed to sustain movement above $30,000 despite several attempts by the bulls. These failed attacks put pressure on support areas, especially at $29,000, and the rectangle lower boundary at $28,800.</p> 
 <p>Within the short-term market doldrums, BTC outbursts of volatility – are not beneficial for long-term holders but present opportunities for day traders to make a profit.</p> 
 <p>With that in mind, the Money Flow Index (MFI) indicator shows that the outflow of funds into&nbsp;BTC markets&nbsp;currently outweighs the inflow volume.</p> 
 <p>This means that an immediate recovery is highly unlikely unless bulls accept short-term pain to pave the way for&nbsp;<a rel="noopener noreferrer nofollow" title="Bitcoin" href="https://thebittimes.com/tag/bitcoin.html">Bitcoin</a> to sweep through fresh liquidity&nbsp;at the $28,800 support – which almost coincides with the 100-day EMA (blue).</p> 
 <figure id="attachment_156686" aria-describedby="caption-attachment-156686" style="width: 100%" class="wp-caption aligncenter"> 
  <img decoding="async" class="size-full wp-image-156686" src="data:image/svg+xml,%3Csvg%20xmlns='//www.w3.org/2000/svg'%20viewBox='0%200%201140%20605'%3E%3C/svg%3E" alt="Bitcoin holds support at $28,800" width="1140" height="605" data-lazy-src="https://cdn.coingape.com/wp-content/uploads/2023/08/16141340/BTCUSD_2023-08-16_11-29-41.png"> 
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   <img decoding="async" class="size-full wp-image-156686" src="https://cdn.coingape.com/wp-content/uploads/2023/08/16141340/BTCUSD_2023-08-16_11-29-41.png" alt="Bitcoin holds support at $28,800" width="1140" height="605"> 
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  <figcaption id="caption-attachment-156686" class="wp-caption-text">
    BTC/USD daily price chart | Tradingview 
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 </figure> 
 <p>If the downward pressure on the $29,000 immediate support continues, traders will likely increase their exposure to BTC shorts, which could trigger a sell-off.</p> 
 <p>Movement, below $29,000 means a possible breakout at the rectangle pattern and continued declines to the target at $27,469. Other support areas to keep in mind include the 200-day EMA (purple) at $27,305 and the June lows around $25,000.</p> 
 <h3 id="related-articles">Related Articles</h3> 
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  <li>Crypto Price Today: SEI And BONE Climb Up, HBAR Rally Cools Off</li> 
  <li>Volatility Shares Ether Futures ETF Target October 12 Launch, Will ETF Price Rally?</li> 
 </ul> 
</div>

Bitcoin Exerting Pressure On $29k Support, Declines Linger

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