Bitcoin Breaks Below the Support; Will the Correction Drag the BTC Price Below $40,000?

In a shocking move, nearly $150 million was liquidated from the crypto space in the past few moments, causing a huge drop of over 7% to 8% in the BTC price. After consecutive bullish weekly closes, a correction was expected, which appears to have materialised now. Now that more than $266 million worth of long positions have been liquidated, have the traders become pessimistic about the upcoming trend?

Bitcoin has printed bullish green candles for the eighth consecutive week. The last time it happened was during the pre-bull market of 2020 when the price was going to $69,000. Besides, no major resistance had supported the 2021 bull run, but in the present times, a couple of resistances may act as a milestone, offering a base to maintain a healthy upswing.

Now that the price is facing some bearish action, will it be transformed into a correction?

With the recent price action, the BTC price has slightly dropped below the crucial support at $42,472, losing the pivotal position at around $42,000. The RSI and MACD indicate a fresh bearish action could be fast approaching that may drag the price below $40,000 too. However, the buyers have quickly jumped into action, which suggests a steep drop may not be in place. Meanwhile, market sentiments have shifted to extreme greed, which could substantiate the bearish claim.

In the coming days, the Bitcoin price is believed to hold some volatility and display some massive price variation. This may lead not only to the price ranging back beyond the levels and reaching $50,000 but is likely to rise beyond $60,000. However, the Bitcoin (BTC) price is offering a good buying opportunity, which could lead to fine price action in the coming days.