The market is down more than 15%, and the price of Bitcoin is below $41,000. Is now the right time to get it?

In shocking news, Terraform Labs filed for bankruptcy protection, sending the prices of LUNA and LUNC plummeting by more than 5%. Meanwhile, Bitcoin price was speculated to undergo a bearish reversal, with the technical side heading south. Therefore, negative sentiment has fueled the downtrend and could further turn into a downtrend as BTC price loses support at $40,000.

Will Bitcoin price trigger a rebound, or could negative sentiment prevail and lead to a prolonged decline below $40,000? So is now the right time to buy BTC?

BTC price held its weekly close and unfortunately failed to close above last week’s level of $41,700. The token recorded a weak close for the second week in a row, forming a bearish shooting star and a bearish top. This candlestick pattern has raised a lot of concerns and if BTC bulls fail to defend the support, the price may fall to $35,000.

A look at Bitcoin’s weekly chart shows that the price remains between key resistance and support levels at $41,913 and $40,741, respectively. In terms of support, $40,000 acts as strong support with $37,000 as the first line of defense and $30,000 as the second line of defense. With the weekly RSI trending lower, we expect further price corrections to follow. There has been a significant increase in bearish activity despite volume continuing to remain low.

Future trading can be very risky now, as a potential decline can only revive long-term trades. If the bulls fail to hold the $40,000 support, BTC price could plunge another 10% to enter the support zone between $36,189 and $34,684. This can be considered a last line of defense, and if the price breaches that zone, a sharp decline below $30,000 can be expected.

However, a bounce from a key support zone may eventually diverge from the downtrend for some time. This is because only a massive influx of purchases can push the price of Bitcoin (BTC) above the bearish influence.