Bitcoin is re-creating the ‘three blind mice’ trading pattern: Peter Brandt

Veteran trader Peter Brandt said Bitcoin was forming a “three blind mice” pattern, which some interpreted as meaning the asset could drop in the coming days.

In an Oct. 2 post for X, Brandt told his 740,000 followers that Bitcoin (BTC) is currently forming “the famous three blind mice and a slice of cheese” trading pattern.

According to technical analysis data from trading platform Morpher, the “Three Blind Mice” pattern is commonly seen as a “continuation” pattern, which means that whatever direction the “Three Blind Mice” goes, the future price action will follow.

Brandt last mentioned the Three Blind Mice pattern on December 17, 2022, when Bitcoin was trading around $17,000 and entered a weeks-long period before breaking out sharply in January 2023.

In a previous Oct. 2 post for X, Brandt warned traders that Bitcoin's most recent rally “will not break a 7-month sequence of low highs and low lows,” while Bitcoin is still locked in an ongoing downtrend.

“Only the close above 71,000, confirmed by a new ATH, indicates that the trend low from November 2022 is in effect,” Brandt wrote.

Related: Bitcoin ‘takes time' to break $74k as BTC ‘moves to neutral' – analyst

Many traders believe that Brandt's “Three Blind Mice” pattern is more ironic than the Three Black Crows pattern, which is used to indicate a reversal of the high.

The name of the system may have been derived from the famous nursery rhyme “Three Blind Mice” with “See How They Run” twice.

Bitcoin prices have fallen 7.1% over the past three days, a 72-hour slump that has erased nearly 12 days of gains.

Bitcoin prices tumbled as markets grew jittery amid escalating geopolitical tensions in the Middle East, exacerbated by growing concerns about the strength of the US economy and the outcome of the upcoming election.

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