Peter Brandt Warns: Bitcoin Forms ‘Three Blind Mice’ Trading Pattern, Signaling Potential Downtrend

Veteran trader Peter Brandt has issued a caution to Bitcoin traders, suggesting that the cryptocurrency could be heading towards a deeper downtrend. Brandt recently pointed out that Bitcoin appears to be forming a "three blind mice" pattern, a technical analysis signal that could indicate further price declines in the near future.

In an Oct. 2 post on X (formerly Twitter), Brandt shared his insights with his 740,000 followers, warning them about this emerging pattern. According to technical analysis from the trading platform Morpher, the "three blind mice" pattern is typically a continuation pattern. This means that the direction in which the pattern forms is likely to predict future price movement—if it’s headed down, the downtrend may continue.

Brandt previously mentioned this same pattern on Dec. 17, 2022, when Bitcoin was trading around $17,000. At that time, Bitcoin entered a slump that lasted several weeks before experiencing a sharp breakout in January 2023. Traders are now wary that a similar scenario might unfold.

In an earlier Oct. 2 post, Brandt emphasized that Bitcoin's recent rally didn’t break the 7-month trend of "lower highs and lower lows," indicating that the asset is still in a downward trajectory. He further stated that only a close above $71,000, confirmed by a new all-time high (ATH), would suggest that the bullish trend, which began in November 2022, is still intact.

A Humorous Twist on a Bearish Pattern

Some traders believe that Brandt’s reference to the "three blind mice" is a lighthearted take on the well-known "Three Black Crows" pattern, a signal used to identify the reversal of an uptrend. The name also seems to be inspired by the famous nursery rhyme, which repeats the phrase “three blind mice” followed by “see how they run.”

Bitcoin’s price has taken a hit recently, falling by 7.1% over the last three days. This sharp downturn has wiped out nearly two weeks' worth of gains, with market sentiment rattled by rising geopolitical tensions in the Middle East and growing concerns about the U.S. economy and the upcoming election.

As the cryptocurrency market reacts to these global factors, traders are closely watching for signs of either a continued slump or a potential rebound. For now, Brandt’s analysis serves as a reminder that Bitcoin remains in a vulnerable position, and the future price action could be dictated by both technical patterns and macroeconomic forces.