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

BlockBeats news, September 18 — Renowned analyst Willy Woo analyzed BTC's monthly chart using the Fisher Transform indicator, pointing out that the current golden cross under this indicator is the 4th bottom signal in history, with the previous 3 not producing false breakouts. However, Willy Woo emphasized that this is not an immediate reversal buy signal; price may first consolidate sideways before continuing in its original direction. Even in bull markets, there have been instances where the Fisher first formed a death cross signaling bearishness, then later a golden cross signaling bullishness, without the trend actually ending.

Willy Woo views tops and bottoms separately: at tops, long-term investor buying recedes while speculative capital continues to push prices higher. The market sustains its rally on momentum but lacks real capital from long-term holders as support, leading to frequent false turning points. Therefore, his approach is to reduce positions in batches rather than predict the exact major top. At bottoms, the decline creates a buying vacuum as speculative capital exits. When prices fall to levels investors consider valuable, buying re-enters. At this point, speculative capital is scarce, making reversals cleaner. This is why many indicators are clearer at bottoms than at tops.

The Fisher Transform indicator is a technical indicator proposed by American quantitative trading researcher John Ehlers in 2002: it first compresses prices, then applies a mathematical transformation similar to "normalization," making the price distribution closer to a bell curve. This causes the indicator to rise or fall rapidly near extreme values, with sharper turns. In trading, the golden cross/death cross of two lines is commonly watched to mark potential turning points, but what it marks is that "the rhythm of price may be turning."