Recently, anyone watching the market can feel that the market sentiment is extremely bad. The Fear and Greed Index is currently only in the 11-21 range, and just looking at this number shows how desperate the situation is. But the more extreme the situation, the more likely it is to be the eve of a rebound.

Why do I say that? Because when the sentiment index drops below 20, it almost always indicates that the oversold condition has bottomed out historically. Plus, with BTC's price currently stuck near the critical support level of $87,500, both the sentiment and technical aspects are resonating, and the conditions for a short-term rebound are actually in place.

From the 4-hour candlestick chart, details are starting to change. The RSI indicator is rising from the oversold zone, the MACD shows signs of a golden cross, and the histogram has shifted from negative to positive — all signals that the bulls are gaining strength. On the hourly level, the price has stabilized around $87,500 and a small rebound has occurred, indicating that the buying force at this level is not weak.

However, it must be clarified: a rebound after extreme panic does not equal a trend reversal. If subsequent fundamentals or capital flow do not support it, after a correction rebound, the price could still dip again. Therefore, in the short term, focus on whether the $87,500 level can hold and whether there is sufficient volume to support the move. These are the key factors in judging how far the rebound can go.