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Willy Woo: Bitcoin’s Fisher Transform golden cross points to a bottom, marking the 4th bottom signal in history.

2026.09.18 14:53:35

Renowned crypto analyst Willy Woo analyzed Bitcoin’s (BTC) monthly chart using the Fisher Transform indicator, noting that the current golden cross on the metric marks the 4th bottom signal in history, with no false breakouts in the prior three instances. However, Woo emphasized this is not an immediate reversal buy signal; prices may first consolidate sideways before moving in their original trend. He added that during bull markets, the Fisher Transform has previously triggered a bearish death cross followed by a bullish golden cross, with the uptrend still intact afterward. Woo distinguishes between market tops and bottoms: At tops, long-term investor buying dries up, while speculative buying continues to push prices higher. The rally relies on momentum rather than sustained long-term holding support, leading to frequent false turning points. As such, Woo’s strategy is to reduce positions gradually instead of predicting exact peak levels. At bottoms, price drops create a buying vacuum as speculative investors exit. When prices fall to levels long-term investors deem valuable, buying resumes. With speculative activity limited, reversals are cleaner, making many technical indicators more reliable at bottoms than at tops. The Fisher Transform is a technical indicator developed by U.S. quantitative researcher John Ehlers in 2002. It first compresses prices and applies a mathematical transformation similar to normalization to make price distributions closer to a bell curve. This causes the indicator to spike or drop sharply near extremes, with more distinct turning points. Traders typically use golden crosses/death crosses of the indicator’s two lines to identify potential turning points, though the Fisher Transform signals a possible shift in price rhythm rather than an immediate reversal.

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