Seeing $HYPE surge today by +6.13% to $42.14, and the circle of friends is again sharing various screenshots of "successful bottom fishing." But don’t rush, I want to ask a question: why is the Fear and Greed Index still in the extreme panic zone at 16?

Most people haven't noticed that this kind of rebound often resembles a technical correction in panic. The trading volume of 352 million USDT seems significant, but upon closer thought, it’s more likely driven by stop-losses and passive liquidations, not genuine bottom-fishing funds.
Looking from a different angle, the rebound from $39.41 to $42.19 just hits many people's psychological price levels. Those friends trapped between $45-50 might choose to cut losses at this price, creating a new resistance.
Even more interesting is that the overall market sentiment remains in extreme panic, and the BTC perpetual funding rate is only neutral, indicating that this rebound hasn't brought about a real shift in sentiment. Everyone is waiting to escape, not genuinely bullish.
I actually think it’s more dangerous now than yesterday. At $39 yesterday, the panic was unanimous; now, with this half-dead rebound, it’s easiest to give people a false impression. The true bottom often doesn’t appear during such "small spring" rallies.