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

Analyst Willy Woo highlighted a rare bullish crossover of the Fisher Transform indicator on Bitcoin's monthly chart, noting it was only the fourth such occurrence in the asset's history. The monthly crossover, which showed a Fisher reading of -2.26 when it formed in July, is presented by Woo as a pattern that has previously aligned with the ends of Bitcoin bear markets. The Fisher Transform is a trend-strength tool that applies a log-based adjustment to price data to reduce time spent at extreme values and to make trend signals clearer. It comprises two lines — the Fisher line and a one-period delayed trigger line — and bullish signals are generated when the Fisher line crosses above the trigger line. According to Woo, past sharp upward crossovers on monthly timeframes corresponded with cleaner market bottoms. On weekly charts, Woo pointed to a developing bullish divergence: the Fisher indicator has posted a series of higher lows since its December swing low of -2.85 while price recorded lower lows, a structure he links to the closing stages of the 2022 bear market. That earlier period also saw Fisher generate a bullish divergence in the final months of the downtrend. Despite these indicator readings, Woo and others have cautioned that the current market environment differs in some respects from past bottoms. Bitcoin reached a 21-month low near $57,000 on July 1, and Woo has observed limited buyer activity at those lows, with accumulation concentrated among a small number of large-volume investors. He also noted that during bull markets, speculative traders can cause choppy false signals — a dynamic that is typically reduced at bear-market lows and may make bottom signals more reliable.