Veteran trader Peter Brandt has sounded the alarm for Bitcoin traders, pointing out that the cryptocurrency is forming a “three blind mice” pattern, which could indicate further price drops. In an October 2 post to X (formerly Twitter), Brandt warned his 740,000 followers that Bitcoin’s current trading pattern may signal a continuation of its recent downtrend.
What Is the ‘Three Blind Mice’ Pattern?
The “three blind mice” pattern, according to data from the trading platform Morpher, is generally viewed as a continuation pattern. This means that whatever direction the pattern is headed—whether up or down—will likely continue in the same direction. In Bitcoin’s case, the current formation suggests the asset could face further declines in the coming days.
This isn’t the first time Brandt has mentioned this pattern. In December 2022, he highlighted it when Bitcoin was trading around $17,000. The cryptocurrency then went into a weeks-long slump before rebounding sharply in early 2023. Brandt’s reference to the “three blind mice” is seen by some traders as a lighthearted variation of the “Three Black Crows” pattern, which signals a potential reversal of an uptrend.
Bitcoin’s Downtrend Persists Despite Recent Rally
In another October 2 post, Brandt reminded traders that Bitcoin remains in a downtrend, despite a recent rally. He pointed out that Bitcoin has maintained a 7-month sequence of lower highs and lower lows, and emphasized that only a close above $71,000, confirmed by a new all-time high (ATH), would break this downward trend.
The price of Bitcoin has fallen 7.1% over the last three days, erasing gains made over the prior 12 days. This sharp decline has been fueled by a combination of factors, including geopolitical tensions in the Middle East and increasing concerns over the U.S. economy and the potential impact of the upcoming elections.
Market Sentiment: A Repeat of Past Patterns?
Bitcoin’s latest price slump has left traders questioning whether history could repeat itself. In December 2022, Bitcoin’s price followed a similar pattern before eventually staging a recovery in January 2023. However, the current geopolitical and economic uncertainties add a layer of unpredictability, with many traders wary of further declines.
While the “three blind mice” pattern may seem humorous, Brandt’s warning is a serious one for crypto traders, indicating that Bitcoin may remain under pressure unless it can break out of its downward cycle.
