Veteran crypto trader Peter Brandt has recently pointed out that Bitcoin (BTC) is forming a ‘three blind mice’ pattern, leaving the crypto community buzzing with questions about its implications. Brandt shared his observation in an X post, where he referred to Bitcoin’s current formation as the “Three Blind Mice and a Piece of Cheese” trading pattern. However, he stopped short of elaborating on whether this specific pattern signals a bullish or bearish outlook for the flagship cryptocurrency.
Brandt’s provided chart hinted at a potentially bearish scenario, with the latest candlesticks indicating a possible downtrend. The ‘Three Blind Mice’ pattern is commonly understood to follow an uptrend, signaling a bearish reversal. This suggests that the bears might be gaining dominance, potentially pushing Bitcoin into further downward spirals. Bitcoin’s price action seems to support this theory, given its retreat after recently surpassing $65,000.
Bitcoin had surged above $65,000, aiming for its best monthly close since September 2013. However, the onset of October has seen a significant price correction, raising concerns about Bitcoin re-entering bearish territory. Despite this, the cryptocurrency has managed to hold above the crucial $60,000 support level, providing a semblance of hope for bullish investors.
The price correction in Bitcoin has largely been attributed to escalating tensions in the Middle East, particularly the conflict between Israel and Iran. The flagship cryptocurrency recently tested the $60,000 support level following Iran’s missile strike on Israel.
Peter Brandt’s earlier post appears to fortify his bearish stance on Bitcoin’s trajectory. He emphasized that the recent rally did not disrupt the “7-month sequence of lower highs and lower lows,” suggesting a downtrend persists. Brandt noted that only a close above $71,000, marked by a new all-time high (ATH), would confirm a bullish trend continuation from the November 22 low.
Crypto analyst Ali Martinez has echoed the bearish sentiment, predicting that Bitcoin could plummet to as low as $52,000 if the recent price movements follow a descending parallel channel pattern. Analyst Justin Bennett also provided a gloomy forecast, suggesting a potential drop to $51,000. Nonetheless, Bennett expressed more certainty about Bitcoin falling to $57,000, having already hit his initial target of $60,000. He cautioned investors about any transient relief rallies, highlighting that the failure to sustain levels above $64,700 has exposed Bitcoin to increased sell-side pressure.