Bitcoin Price Charts Indicate Glimmer of Hope for Corrective Rally

Bitcoin's struggle to build a notable bounce could end if prices beat key resistance above $3,600.

The leading cryptocurrency by market value fell to 15-month lows near $3,200 last week, pushing the 14-week relative strength index below 30.00 for the first time since 2015.

With bitcoin so extremely oversold, a recovery rally cannot be ruled out - more so because there is evidence of bargain hunters challenging the bears' resolve to push prices lower.

A stronger rally could unfold if prices manage to cross the newfound resistance of $3,633 in the next 48 hours or so.

As of writing, BTC is trading at $3,414 on Bitstamp, having clocked a low of $3,325 earlier today.

As seen above, bitcoin has charted an "Inverted hammer" candle, which occurs when prices see a brief rally during a downtrend.

On the daily chart, the 14-day RSI has posted a higher low as opposed to the lower low on price, meaning the indicator is diverging in favor of the bulls.

View A convincing move above $3,633 would validate the inverted hammer candle seen in the 3-day chart and open the doors for a stronger corrective rally to $4,000.

A break below the recent low of $3,210 would reinforce the overall bearish view, although oversold conditions on the 14-week RSI could limit the downside around $3,000.

Bitcoin image via Shutterstock; charts by Trading View.