To dream of being in the fetal position may reflect a powerful need to avoid confrontation. Feeling perfectly passive. Self-protection or self-preservation that is desperate. Feeling nervous about anything else wrong happening. A perfectly fragile state. Caring about nothing except safety. A fear of taking action at all. Feeling that anything you could do is too dangerous.
Negatively, being in the fetal position may reflect feelings about yourself being exposed to others as totally sensitive, needy, or pathetic. “Wearing your heart on your sleeve.”