The post Crypto rebounds, but Fear Index shows traders aren’t convinced appeared on BitcoinEthereumNews.com.

Crypto markets staged a broad rebound on Wednesday, 25 February, with Bitcoin and Ethereum leading gains after last week’s sharp sell-off. However, sentiment indicators suggest the recovery remains fragile, as investor confidence lags behind price action. At the time of writing, Bitcoin was trading around $67,400, up roughly 5.6% on the day. Ethereum climbed nearly 9.6%, reclaiming levels above $1,950. Major altcoins followed suit, with Solana up 11.5%, XRP gaining 6.7%, and BNB rising 6.1%, according to market data. Source: TradingView Despite the green-heavy heatmap, sentiment metrics tell a more cautious story. Bitcoin and Ethereum lead a broad market bounce The rebound follows a volatile trading session that saw Bitcoin briefly dip toward the $62,000–$63,000 range before buyers stepped in. Trading volume spiked during the sell-off, suggesting forced liquidations and defensive positioning played a role in the initial move lower. Ethereum mirrored Bitcoin’s trajectory, falling sharply before rebounding from lows near $1,850. The synchronized recovery across majors points to market-wide positioning rather than asset-specific catalysts. Still, neither asset has meaningfully reclaimed key resistance levels from earlier in the month, keeping the broader trend technically unresolved. Fear and Greed Index signals persistent risk aversion While prices bounced, sentiment remains deeply strained. The Crypto Fear and Greed Index currently sits at 11, firmly in “Extreme Fear” territory. Historically, such readings indicate heightened uncertainty and risk aversion among traders, even during short-term recoveries. Previous instances of similar fear levels have often coincided with volatile consolidation phases rather than immediate trend reversals. Source: CoinMarketCap Notably, the index remains well below neutral despite Bitcoin’s rebound of more than $4,000 from its recent low, highlighting a disconnect between price action and trader conviction. Rebound driven by positioning, not conviction The structure of the rebound suggests it may be driven more by short covering and tactical dip-buying…

---

Filed under: News - @ February 25, 2026 5:25 pm