I think it's quite likely.

The bearish sentiment is quite strong given that we could not break $50k resistance for quite a few months now.

Right now the price of BTC is just edging towards that $40k level. I personally don't see it bouncing off the support of $40k because there were massive liquidations and most longs are already gone. Traders and investors really went to bullish too soon with insane amounts of leverage this time, and they're paying the price now.