Fisher Transform Signal Triggers Bull-Market Hopes Amid BTC Price Consolidation

A classic trading indicator is signaling that Bitcoin's latest long-term floor may already be in place. The Fisher Transform indicator, created in 2002, has delivered a monthly bullish crossover for only the fourth time in Bitcoin's history.

This most recent cross occurred during July at -2.26, and if it continues to play out, history suggests that BTC/USD will embark on a new macro uptrend. Willy Woo notes that price could still consolidate and continue lower, referencing a corresponding phenomenon during bull markets where Fisher delivered a bearish crossover, only to offer a fresh bullish one later.

This phenomenon is due to the presence of speculative traders during long-term BTC price uptrends, who influence market momentum because they are sensitive to short-term price moves. By contrast, during bear-market bottom phases, such traders are mostly absent, boosting the reliability of Fisher bottom signals.