Bitcoin: Was July the bottom? Rare bullish signal spotted

A fourth-ever bullish cross has occurred on Bitcoin’s monthly Fisher Transform indicator, renewing interest in whether a long-term bottom is forming.

Cointelegraph reported on Aug. 18 that analyst Willy Woo (윌리 우) said the indicator suggests Bitcoin may have already formed a long-term bottom.

Fisher Transform is an indicator that smooths price action to show trend strength. Woo said that whenever the Fisher line and trigger line sharply crossed higher on the monthly chart, it coincided with a Bitcoin bear-market bottom. He added, "Looking at the cases so far, all three Bitcoin bottoms matched without a fake signal. The latest signal is the fourth on record."

This cross occurred in July at the -2.26 level. If the same pattern continues, Bitcoin could enter a new long-term uptrend.

Still, it is difficult to assume a one-way rise immediately. Woo said there have been cases in bull markets where the Fisher indicator showed a bearish cross and then later returned to a bullish cross. He left open the possibility that Bitcoin’s price could move sideways for some time or fall further.

He said the difference comes from the mix of market investors. In long upswings, many speculative traders are sensitive to short-term price moves, making signals more likely to wobble. Near bear-market bottoms, most of those participants exit, raising the reliability of bottom signals, he said.