Veteran trader Peter Brandt has noted that Bitcoin is forming a “three blind mice” pattern, with some interpreting the message to mean that the asset may tumble lower in the coming days.
In an Oct. 2 post on X, Brandt told his 740,000 followers that Bitcoin (BTC) is forming the “infamous Three Blind Mice and a Piece of Cheese” trading pattern.
Source: Peter Brandt
According to technical analysis data from trading platform Morpher, the “three blind mice” pattern is typically seen as a “continuation” pattern, meaning that whatever direction the “three blind mice” are headed is where future price action will follow.
Brandt last mentioned the three blind mice pattern in a post on X on Dec. 17, 2022, when Bitcoin traded for about $17,000 and entered a weekslong slump before breaking out sharply to the upside in January 2023.
In an earlier Oct. 2 post on X, Brandt cautioned traders that Bitcoin’s most recent rally did not “disturb the 7-month sequence of lower highs and lower lows,” adding that Bitcoin is still locked in an ongoing downtrend.
“Only a close above 71,000 confirmed by a new ATH will indicate that the trend from the Nov 2022 low remains in force,” wrote Brandt.
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Several traders have speculated that Brandt’s “three blind mice” pattern is a more humorous take on the “three black crows” pattern, which is used to indicate the reversal of an uptrend.
The pattern’s namesake may also stem from the famous nursery rhyme, which repeats two stanzas of “three blind mice” with “see how they run.”
The price of Bitcoin has tumbled 7.1% in the last three days, with the sharp 72-hour downturn erasing nearly 12 days of gains.
Bitcoin has fallen 7.1% in the last three days. Source: CoinGecko
The price of Bitcoin has plunged as markets were spooked by escalating geopolitical tensions in the Middle East, made worse by mounting concerns about the strength of the US economy and the outcome of the upcoming election.
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