Bitcoin is showing signs of a concerning trading pattern that could signal further declines.
Veteran trader Peter Brandt has alerted crypto traders that Bitcoin may be entering a deeper downtrend.
Warning signs from a veteran trader
In a post on October 2, Brandt shared with his 740,000 followers on X that Bitcoin, currently priced at $60,370.55, is forming what he calls the “Three Blind Mice and a Piece of Cheese” pattern.
Bitcoin forms the infamous "Three Blind Mice and a Piece of Cheese" trading pattern. $BTC pic.twitter.com/gL3kjIHCI0
— Peter Brandt (@PeterLBrandt) October 2, 2024
According to technical analysis from the trading platform Morpher, this “three blind mice” pattern is generally viewed as a continuation pattern.
This means that the direction in which the “three blind mice” are moving is likely to indicate where future prices will go.
Please all be aware that Bitcoin $BTC is developing the infamous "three blind mice" chart construction. pic.twitter.com/YeZHaHiOev
— Peter Brandt (@PeterLBrandt) December 16, 2022
On mice and men
Brandt previously mentioned this pattern on December 17, 2022, when Bitcoin was trading around $17,000.
At that time, Bitcoin entered a prolonged slump before sharply rising in January 2023. In another post on October 2, Brandt warned traders that Bitcoin’s recent rally had not disrupted the ongoing trend of lower highs and lower lows over the past seven months.
He stated that only a close above $71,000 confirmed by a new all-time high would suggest that the trend from the November 2022 low is still valid.
Bitcoin’s future is affected?
Some traders have speculated that Brandt’s “three blind mice” pattern is a playful twist on the “three black crows” pattern, which signals a reversal in an uptrend.
The name may also come from the well-known nursery rhyme featuring “three blind mice” and their antics.
In recent days, Bitcoin’s price has dropped by 7.1%, erasing nearly 12 days of gains within just three days.
This sharp decline has been attributed to rising geopolitical tensions in the Middle East and growing concerns about the strength of the U.S. economy and the upcoming election.
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