A Famous Trader Spots A Worrying Bearish Signal For Bitcoin

The famous trader Peter Brandt has just issued a warning that is shaking the crypto world. According to him, Bitcoin could soon dive into a prolonged bearish trend, based on a mysterious trading pattern called “the three blind mice.”

Bitcoin Forms a Worrying Bearish Pattern

On October 2, Peter Brandt shared on X (formerly Twitter) an enigmatic chart with his 740,000 followers. His laconic message referred to the formation of the “Three blind mice and a piece of cheese” pattern on Bitcoin’s price.

For insiders, this technical signal usually indicates the continuation of an existing trend – in this case bearish.

This announcement comes in an already tense context for the world’s first crypto. For three days, Bitcoin’s price has dropped more than 7%, erasing nearly two weeks of gains. Several factors seem to weigh on the market, including the escalating tensions in the Middle East and growing concerns about the US economy.

A Warning to Be Taken Seriously?

It should be noted that this is not the first time Peter Brandt has mentioned this particular pattern. In December 2022, when Bitcoin was stagnating around 17,000 dollars, he had already mentioned the “three blind mice.” This announcement had preceded a short period of crisis, before a spectacular rebound in January 2023.

However, Brandt remains cautious about interpreting these signals. In another message, he notes that only a close above 71,000 dollars, confirmed by a new all-time high, would indicate that the bullish trend initiated since November 2022 remains intact.

The crypto community remains divided on the exact meaning of this pattern. Some see it as a humorous version of the famous “three black crows” pattern, known for signaling a bearish reversal of an uptrend. Others link it to the eponymous nursery rhyme, suggesting increased volatility to come.

In the face of these conflicting signals, investors are urged to exercise utmost caution. While history has shown that Bitcoin can surprise even the most seasoned analysts, the coming weeks are crucial in determining the direction that the crypto market will take.