Crypto Market News: Warning Signs Point to a Potential Bitcoin (BTC) Price Collapse in June

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The cryptocurrency market is once again experiencing a decline as the price of Bitcoin faces significant bearish pressure. Following its yearly peak of $31,170, Bitcoin has entered a retracement phase, resulting in setbacks and causing concerns among investors. At the time of writing, Bitcoin is trading below the $27k mark and is down by more than two percent.

Beyond Bitcoin’s individual performance, analyst Nicholas Merten examined whether cryptocurrencies will continue to outpace other markets. While long-term crypto investors may still believe in the potential for cryptocurrency to be the top-performing asset, the question remains: will crypto maintain its parabolic growth and surpass other assets over the next six months, a year, or even longer?

He highlighted one area of concern, which was the rapid growth of tech stocks, as evident in the NASDAQ index. These stocks, including industry giants like Nvidia, Apple, Meta, Amazon, Netflix, Google, and Microsoft, have been steadily outperforming Bitcoin. 

With a surge in interest and investment in artificial intelligence (AI), the NASDAQ has reached its highest point since April 2022. Comparatively, Bitcoin has faced resistance and has not seen a similar upward trajectory

Currently, the Bitcoin to NASDAQ ratio has declined by over 20%, approaching a critical level. This range holds significance as it acted as support in June and July 2021, witnessed a downward breakthrough in June 2022, and served as resistance until March 2023.  This scenario would align with the bear market sentiment, in which Bitcoin’s relief rally loses momentum, leading to lower prices.

During a six-month period from November 2022 to April 2023, Bitcoin significantly outperformed the NASDAQ, with the ratio increasing from 1.4 to 2.5. This reflected a substantial recovery for Bitcoin, with a percentage gain of 75 from its absolute lows.