Bitcoin adds to bull-market hopes as price metric prints fourth-ever bullish cross

Bitcoin (BTC) is showing strong signs that its latest long-term floor is already in, according to a classic trading indicator.

Key points:

• In August, the Fisher Transform indicator delivered a monthly bullish crossover for only the fourth time in Bitcoin’s history, according to Willy Woo.
• Previous monthly crossovers accompanied the end of Bitcoin bear markets, including in late 2022, when the Fisher Transform Indicator hit -3.83.
• A bullish divergence continued on weekly time frames, echoing the closing stages of the 2022 BTC price downtrend.

Analyst sees evidence of clean BTC price reversal

In an X thread on Friday, analyst Willy Woo flagged key readings from the Fisher Transform indicator, a price trend analysis tool created in 2002.

The indicator smooths an asset’s price action to create a readable trend-strength chart. Market prices tend to spend more time around extreme values than ordinary statistical data. The Fisher transform corrects this by applying a log-based transform. 

The indicator is formed of two trend lines, the Fisher line and the trigger line, that fluctuate on a scale with zero at its center. The trigger line is derived from the Fisher line, plotted with a delay of one period.