Originally published on: October 03, 2024
Bitcoin is once again catching the attention of traders as veteran analyst Peter Brandt identifies a unique trading pattern called the “three blind mice.” With Bitcoin currently at $61,249.33, the market seems to be forming this interesting pattern that could indicate a potential downward trend in the near future.
In technical analysis, the “three blind mice” pattern is often seen as a “continuation” pattern, suggesting that future price action may follow the direction set by this peculiar formation. Brandt previously mentioned this pattern back in 2022 when Bitcoin was trading around $17,000, hinting at a similar downward trend followed by a sharp breakout to the upside.
Despite Bitcoin’s recent rally, Brandt remains cautious as the asset shows a sequence of lower highs and lower lows, indicating a prevailing downtrend. To confirm a trend reversal, Bitcoin would need to close above $71,000, supported by a new all-time high.
Speculations abound regarding Brandt’s humorous naming of the pattern, with some linking it to the popular nursery rhyme that repeats “three blind mice.” However, traders are closely watching how this pattern unfolds as Bitcoin’s price experienced a 7.1% drop in the last three days, erasing nearly 12 days of gains.
The recent downturn follows geopolitical tensions in the Middle East and mounting concerns about the US economy and the upcoming election. Amidst this uncertainty, Bitcoin traders are eagerly waiting to see if the “three blind mice” pattern will lead the asset to new lows or if a breakout is on the horizon. Stay tuned for more updates on Bitcoin’s price action and market movements.
