Why bitcoin is trading at the bottom of a year-long price range

Bitcoin tumbled to an 11-month low, now sitting just below $30,000

The world’s largest crypto is now trading at the bottom of a year-long price range. 

Bitcoin is down by 6 per cent over the past 24 hours.

The cryptocurrency could find support between $27 thousand and $30 thousand dollars.

Although according to coindesk, negative momentum signals point to additional breakdowns.

The relative strength index on the daily chart is deeply oversold, similar to what occurred earlier this year and may of last year.

Analysts still predict a downtrend, as oversold conditions can persist for a few weeks before an upswing in price occurs.

The drop came after data showed U.S. consumer prices rose by more than forecast in April, indicating inflation will persist at elevated levels for longer.

The data point also suggests the Federal Reserve will stay on its path of aggressive interest-rate hikes.

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