Bitcoin Forms 'Three Blind Mice' Pattern, Potential Downtrend Ahead

According to Cointelegraph, veteran trader Peter Brandt has observed that Bitcoin is forming a 'three blind mice' pattern, which some interpret as a sign that the asset could decline in the coming days. In an Oct. 2 post on X, Brandt informed his 740,000 followers about this pattern, referring to it as the 'infamous Three Blind Mice and a Piece of Cheese' trading pattern. Technical analysis data from trading platform Morpher suggests that the 'three blind mice' pattern is typically seen as a 'continuation' pattern, indicating that the future price action will follow the direction of the 'three blind mice.' Brandt previously mentioned this pattern on Dec. 17, 2022, when Bitcoin was trading around $17,000 and subsequently entered a weeks-long slump before sharply breaking out to the upside in January 2023. In an earlier Oct. 2 post on X, Brandt warned traders that Bitcoin's recent rally did not 'disturb the 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 will indicate that the trend from the Nov 2022 low remains in force.' 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 name may also be derived from the popular nursery rhyme, which repeats the phrase 'three blind mice' with 'see how they run.' The price of Bitcoin has dropped 7.1% in the last three days, with the sharp 72-hour downturn erasing nearly 12 days of gains. This decline has been attributed to escalating geopolitical tensions in the Middle East, compounded by concerns about the strength of the US economy and the outcome of the upcoming election.