Veteran trader Peter Brandt has raised concerns that Bitcoin might be developing a “three blind mice” pattern, suggesting a potential price decline in the near future.
In an October 2 post on X, Brandt shared with his 740,000 followers that Bitcoin appears to be forming what he refers to as the “infamous Three Blind Mice and a Piece of Cheese” trading pattern.
Technical analysts from Morpher’s trading platform suggest the “three blind mice” pattern is generally considered a continuation pattern. This implies that the future price movement is likely to follow the same direction indicated by the “three blind mice.”
Brandt warned traders that Bitcoin’s latest rally failed to break the 7-month pattern of lower highs and lower lows, signalling that the cryptocurrency remains in a persistent downtrend. He noted that only a close above $71,000, accompanied by a new all-time high (ATH), would confirm that the upward trend from the November 2022 low is still intact.
Some traders have speculated that Brandt’s “three blind mice” pattern is a playful twist on the well-known “three black crows” pattern, which typically signals the reversal of an uptrend. The famous nursery rhyme might also inspire the name, which features the repeated lines “three blind mice” and “see how they run.”
This isn’t the first time Brandt has referenced the “three blind mice” pattern. In a December 17, 2022, post on X, he highlighted the same pattern when Bitcoin traded at around $17,000.
Brandt, who has been actively analysing Bitcoin’s market movements, also weighed in on the cryptocurrency’s prospects. While many analysts and enthusiasts predict an imminent bullish run despite recent price setbacks, he maintains a cautiously optimistic outlook about the cryptocurrency’s long-term trajectory.
“I’ve shared this chart many times before in slightly different versions, and it continues to be my favoured interpretation,”
he noted.
On May 16, Bitcoin stabilised around $66,000, marking a 7.5% gain from the previous day and raising investor hopes for further upward momentum. Though market sentiment remains divided, with some experts urging caution, market analytics firm QCP Capital forecasted that Bitcoin could rebound to as high as $74,000.
Disclaimer: This piece is intended solely for informational purposes and should not be considered trading or investment advice. Nothing herein should be construed as financial, legal, or tax advice. Trading or investing in cryptocurrencies carries a considerable risk of financial loss. Always conduct due diligence.
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