Greed and Fear Balanced: The Crypto Index Reaches Neutral Zone as Bitcoin Rebounds to $91K

The Market Breathes with Caution

For the first time since October, the Cryptocurrency Fear and Greed Index has moved into neutral territory, hovering around 40 points. This reading reveals a significant shift in market psychology: after months of extreme volatility, traders have finally found a balance point where neither panic nor reckless speculation dominates decision-making.

The neutral reading is particularly interesting because it marks a turning point. The market has moved away from both paralyzing fear and excessive greed, replacing them with calculated prudence. This transition is often a prelude to new dynamics, although it is still premature to determine which direction they will take.

Bitcoin Demonstrates Technical Strength

Bitcoin has successfully recovered the $91.33K zone, consolidating with a series of consecutive green candles that indicate sustained bullish pressure. After weeks of trading within depressed ranges, the price has broken through key resistances and is beginning to show signs of renewed vigor.

Technical analysis reflects this recovery clearly. The Relative Strength Index (RSI) was above 60 at the time of analysis, confirming that buying pressure is gaining traction. Simultaneously, the MACD has turned positive, indicating the buildup of genuine bullish momentum. Most importantly, this rise occurred after an extended period of consolidation, which suggests healthy price action without underlying weakness signals.

The October Precedent: A Lesson from the Past

History provides valuable context. In October 2025, when sentiment last reached neutrality, the calm was fleeting. The optimism that had prevailed for months evaporated quickly, and Bitcoin, which had hit all-time highs above $125,000, began its rapid decline.

The speed was astonishing: BTC plummeted to nearly $80,000 in just days, erasing more than a third of its value in a short period. Altcoins suffered an even harsher punishment, with many collapsing without warning. The altcoin segment excluding Bitcoin and Ethereum lost approximately one-third of its market cap in a single trading session.

The Difference This Time: Institutional Support

However, current circumstances present different nuances. Nic Puckrin, investment analyst and co-founder of Coin Bureau, highlights a crucial element: “Bitcoin was so massively oversold at the end of last year that we are now witnessing a natural technical rebound. Sustained inflows into Bitcoin ETFs demonstrate that institutions are returning to the market, although this does not imply a convergence between Bitcoin and traditional assets. For now, it is simply a temporary coincidence.”

This institutional participation sets the current scenario apart from the previous one. While in October panic took over the market, now there is evidence that large investors are reacquiring positions strategically.

Perspective: Selectivity Instead of Speculation

The neutral sentiment indicates that traders are adopting a more selective and thoughtful approach. There are no longer massive impulsive moves; instead, careful risk assessment prevails. Bitcoin remains above the key recent breakout levels, suggesting that the bullish trend could continue if these supports are maintained.

The $91K zone represents not only a price recovery but a fundamental change in market mechanics: from uncontrolled risk aversion to disciplined capital management.