Shriveled pseudobulbs means a water supply problem. Maybe not enough water on an ongoing basis, or media that isn't retaining much moisture, and maybe low humidity adding to the problem. Maybe too much water, and media staying soggy and breaking down, causing roots to die. Could be as simple as the pot being too small (drying out fast) or too large (staying too wet). Probably a good time to take it out of its pot, check the health of the roots, repot in fresh media, and make sure the new pot is the right size.

Are you sure it is a new spike coming, or could it possibly be a new growth begining to make a new pseudobulb? Either way, I would repot and let the plant decide whether it can sustain the new growth or spike. The 'common sense' idea that a plant can bloom itself to death is more superstition than science. If it is that sick or weak it will abort the spike, or it will die just as fast without it.