Bitcoin Forms 'Three Blind Mice' Pattern, Potential Downtrend Ahead
AI Review
According to Cointelegraph, veteran trader Peter Brandt has noticed that Bitcoin is forming a “three blind mice” pattern, which some are interpreting as a sign that the asset could fall in the coming days. In an Oct. 2 post on X, Brandt informed his 740,000 followers about the pattern, calling it the “infamous ‘three blind mice and a piece of cheese’ trading pattern.”
Technical analysis data from trading platform Morpher shows that the Three Blind Mice pattern is commonly seen as a continuation pattern, indicating that future price action will follow the direction of the Three Blind Mice. Brandt previously mentioned this pattern on December 17, 2022, when Bitcoin was trading around $17,000 and then entered a weekly decline before breaking out sharply in January 2023.
In an earlier post on October 2 on X, Brandt warned traders that Bitcoin’s recent rally “has not broken a 7-month sequence of lower highs and lower lows,” indicating that Bitcoin remains in a downtrend. He stated that “only a close above 71,000, confirmed by a new ATH, would mean that the trend from the November 2022 low remains intact.”
Some traders have suggested that Brandt's Three Blind Mice pattern is a more humorous interpretation of the Three Black Crows pattern, which is used to signal a reversal in an uptrend. The pattern's name may also be derived from a popular nursery rhyme that repeats the phrase "three blind mice" with "look how they run."
Bitcoin has fallen 7.1% in the past three days, with a sharp 72-hour decline erasing nearly 12 days of gains. The decline has been linked to escalating geopolitical tensions in the Middle East, exacerbated by concerns about the strength of the U.S. economy and the outcome of the upcoming elections.
