In a recent post on the social media platform X, renowned cryptocurrency trader Peter Brandt stated that Bitcoin (BTC) has formed the "Three Blind Mice and a Piece of Cheese" trading pattern. However, Brandt did not provide further clarification on the implications of this pattern, leaving the crypto community searching for answers.
Brandt's statement suggests that the 'Three Blind Mice' pattern may indicate a bearish reversal for BTC, as it appears after an uptrend in the market. This means that the bears currently have the upper hand in the market, and Bitcoin may experience further downward pressure. This prediction aligns with recent price action, as Bitcoin has experienced a significant correction since climbing above $65,000 last week.
At the time of writing, Bitcoin is trading at approximately $61,000, down in the last 24 hours, according to data from CoinMarketCap. The flagship crypto rose above $65,000 as it headed for its best monthly close in September since 2013. However, since October began, BTC has witnessed a significant price correction, suggesting that it might once again be in bearish territory. BTC has yet to lose its critical support at $60,000, which has provided some comfort to the Bulls.
Bitcoin's price correction has been primarily due to the rising tensions in the Middle East, with the escalation of the conflict between Israel and Iran. The flagship crypto retested the $60,000 support level following Iran’s missile strike on Israel.
Meanwhile, Brandt's earlier X post suggests that the veteran trader is currently bearish on Bitcoin’s trajectory. He stated that the recent BTC rally didn’t disturb the “7-month sequence of lower highs and lower lows.” He added that only a close above $71,000, confirmed by a new all-time high (ATH), will indicate that the trend from the November 22 low remains in force.
Crypto analyst Ali Martinez has also predicted that Bitcoin could drop to as low as $52,000. He stated that this would happen if the governing pattern behind the recent price action were a descending parallel channel. Analyst Justin Bennett also provided a bearish outlook for BTC, stating that a case can be made for the flagship crypto dropping to $51,000. However, he added that he isn’t certain of the drop to $51,000 right now. What he is more certain of is Bitcoin dropping to $57,000, having reached his first target of $60,000. He also warned Bitcoin investors about any relief rally that the flagship crypto might enjoy while stating that the failure at $64,700 has opened up sell-side liquidity.
Note: This article is for informational purposes only and should not be taken as investment advice. All investments carry risks, and it is important to do your own research before making any investment decisions.
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