What is Three Blind Mice Pattern? Is BTC forming “Three Blind Mice” Pattern?
What is the Three Blind mice pattern? The Three Blind Mice Pattern is a chart pattern used in technical analysis. This pattern is used by investors and analysts to determine the future of a specific stock. In layman’s terms, this pattern always appears after an uptrend in the market. This pattern marks the arrival of the bears in the market. It indicates that the bears have usurped control over the entire market. It means that after the onset of this pattern the upcoming price of the assets is going to display a downward trend.
On the charts, the Three Blind mice pattern appears in the form of a pattern which is bearish. The chart consists of three long-bodied candlesticks. These candlesticks follow a pattern wherein they operate without any shadows and close much lower as compared to their open.
Three Blind Mice Pattern Characteristics
It is characterized by three consecutive price peaks, each one higher than the previous peak and separated by two price troughs. The direction of the price trend depends on the direction of the third peak.
If the third peak is higher than the first peak, then it is bullish. If the third peak is lower than the first peak, then it is bearish.
How to know Three Blind Mice Pattern is Playing Out?
To confirm such a pattern, certain key factors have to be considered:
Trend: The blind mice pattern will always appear after an uptrend pattern in the market.
Formation: The three candlesticks are formed in a manner wherein they show no to little shadow. This means that the bear traders had such a massive stronghold on the market which prevented the price from rising during the trading period.
Confirmation: The formation of a three Blind Candlestick mice pattern can be confirmed by the fact that there should be the formation of a bearish candlestick following the three candlesticks. This new candlestick should consist of a long body with the closing position aligned much closer to the last position of the third blind candlestick.
What is the relevance of the Three Blind Mice Pattern with Bitcoin?
The veteran investor Peter Brandt posted a tweet on his Twitter account wherein he posted an immensely technical chart and wrote that Bitcoin has started developing a Three Blind Mice pattern. However, the tweet or the chart failed to mention any price action in case such an event materialises.
Please all be aware that Bitcoin $BTC is developing the infamous "three blind mice" chart construction. pic.twitter.com/YeZHaHiOev
— Peter Brandt (@PeterLBrandt) December 16, 2022
Apart from this in the past, the veteran investor had once posted on Twitter wherein he had mentioned that Bitcoin would achieve its bottom status after surpassing the $13,000 price. However, he later clarified in November that a steep price drop isn’t expected any time soon shortly. He had also posted about the six blind mice pattern signals and how Bitcoin was showing the same signs. However, it turned out that Bitcoin had achieved a massive bull run after this prediction.
Come on you amateurs, you can do better than this. You are missing the forest from the trees. This is a 28-month coil with the price action most recently being the famous "six-blind-mice signal." Get with it. pic.twitter.com/YjKpFBwpG7
— Peter Brandt (@PeterLBrandt) April 28, 2020
While analysing the chart further investors mentioned the fact that the patterns on the chart seemed like the “three black crows” pattern. However, they further mentioned that it didn’t seem the case because such a pattern consists of three red signals in a consecutive pattern. Therefore investors are viewing this report with lots of scepticism.
The entire “Three Blinds Mice” pattern is viewed as a technically sound strategy but with very low practical implications. Investors rely on a horde of fundamental analysis tools as well as other stuff before finalizing a conclusion about this pattern.