Bitcoin fluctuates around $87,000, but interestingly, the Cryptocurrency Fear and Greed Index remains stuck in the 28 fear zone.

This misalignment reveals a problem: market participants' psychological expectations have not kept up with the price movements. Recent volatility has left many uncertain, and even seeing prices so high, they still choose to remain cautious and watchful.

From past experience, panic at high levels usually does not indicate a fundamental collapse, but rather that everyone is waiting for a confirmation signal. The market needs time to digest, especially during periods of uncertainty. Often, this consolidation phase is actually a buildup for the next wave of movement. The disconnect between price and sentiment indicates that the market has not yet reached a consensus—some see opportunities, while others are still afraid of missing out. This tug-of-war often signals that the direction is about to become clear.