Bitcoin Heads for Worst Month Since Crypto Collapse of 2022

Market Analysis & Potential Risks - The report suggests the stock market might follow Bitcoin's path, indicating a potential bursting bubble scenario [1] - A significant drop in the Bitcoin to gold ratio signals potential problems for the market [2][6] - Low stock market volatility coupled with gold outperforming other assets and crude oil collapsing by 20% suggests a global recessionary trajectory [2][3] - Bitcoin has hit a lower low for 11 straight sessions, a record streak, highlighting its technical weakness [3] - The cryptocurrency space is undergoing a correction, with Bitcoin down more than 4% and a sea of red across altcoins [9][10] Technical Indicators & Oversold Conditions - Bitcoin is significantly oversold for a bear market, suggesting a potential bounce [4] - The relative strength index (RSI) for Bitcoin has broken through the 50-day and 200-day moving averages, reaching an index of 22, indicating oversold conditions [7] - A key level for Bitcoin is around 84, with a potential bounce back to 100,000, but the ultimate key level is around 70 [8] Cryptocurrency Market Concerns - The cryptocurrency space needs a purge, especially with joke coins like Dogecoin reaching a market cap of nearly 60 billion USD at its peak [11] - The unlimited supply of cryptocurrencies is causing people to realize that speculative markets need corrections [9][10] - De-risking in the U S stock market could trickle down to the stock market, posing a key risk for the end of the year [12]