Crypto rebounds, but Fear Index shows traders aren’t convinced

Crypto markets staged a broad rebound on Wednesday, 25 February, with Bitcoin and Ethereum main features after final week’s sharp sell-off. Nonetheless, sentiment indicators counsel the restoration stays fragile, as investor confidence lags behind value motion.

On the time of writing, Bitcoin was buying and selling round $67,400, up roughly 5.6% on the day. Ethereum climbed almost 9.6%, reclaiming ranges above $1,950.

Main altcoins adopted swimsuit, with Solana up 11.5%, XRP gaining 6.7%, and BNB rising 6.1%, based on market knowledge.

Supply: TradingView

Regardless of the green-heavy heatmap, sentiment metrics inform a extra cautious story.

Bitcoin and Ethereum lead a broad market bounce

The rebound follows a risky buying and selling session that noticed Bitcoin briefly dip towards the $62,000–$63,000 vary earlier than consumers stepped in. Buying and selling quantity spiked through the sell-off, suggesting pressured liquidations and defensive positioning performed a job within the preliminary transfer decrease.

Ethereum mirrored Bitcoin’s trajectory, falling sharply earlier than rebounding from lows close to $1,850. The synchronized restoration throughout majors factors to market-wide positioning somewhat than asset-specific catalysts.

Nonetheless, neither asset has meaningfully reclaimed key resistance ranges from earlier within the month, maintaining the broader development technically unresolved.

Concern and Greed Index alerts persistent danger aversion

Whereas costs bounced, sentiment stays deeply strained. The Crypto Concern and Greed Index presently sits at 11, firmly in “Excessive Concern” territory.

Traditionally, such readings point out heightened uncertainty and danger aversion amongst merchants, even throughout short-term recoveries. Earlier situations of comparable concern ranges have usually coincided with risky consolidation phases somewhat than quick development reversals.

Supply: CoinMarketCap

Notably, the index stays nicely under impartial regardless of Bitcoin’s rebound of greater than $4,000 from its latest low, highlighting a disconnect between value motion and dealer conviction.

Rebound pushed by positioning, not conviction

The construction of the rebound suggests it could be pushed extra by brief masking and tactical dip-buying than by renewed bullish confidence. 

Stablecoins, together with USDT and USDC, remained flat on the day, reinforcing the view that capital rotation into danger property stays cautious.

Till sentiment improves and value holds above latest breakdown ranges, the transfer greater could also be susceptible to renewed volatility.

Ultimate Abstract

• Costs rebounded sharply, with Bitcoin up ~5.6% and Ethereum up ~9.6% on the day.
• The rally seems to be tactical, suggesting warning till confidence and construction enhance.