Hi friends! Welcome to this analysis on Nvidia! Today, we're going to look at this important chip-maker stock, to see how it may be continuously effected by the cryptocurrency space. As many of you know, Nvidia is a major supplier of GPUs or "Graphics Processing Units," for cryptocurrency mining rigs. Since cryptocurrency prices have realized enormous losses in the current bear market, mining has become unprofitable (in many cases) leading to a substantial decline in demand for mining equipment, such as the GPUs supplied by Nvidia . In fact, Nvidia said in August that they had seen a “substantial decline” in revenue as a result of declining sales to cryptocurrency miners. So, let's dive into the technicals, to see what the chart has to say. 

Here on the daily NVDA chart, you can see that NVDA had a big bull run that begain in 2016, and capped off after the top was printed in the crypto markets. When I look at the entire bull market (and now correction) that has played out in NVDA , one thing stands out — GAPS! There are unfilled gaps (pink boxes) all over this chart, and big ones too. Interestingly, I looked through the history of NVDA to see how many unfilled gaps existed, and there are virtually none that exist, prior to this cryptocurrency fueled action in the stock. Now, I'm not saying that there have never been gaps, I'm specifically referring to gaps left unfilled. 

Looking back at the chart, you can see that price had a big run up, and subsequent correction, but now it's testing an important rising trendline (in blue.) That rising trendline was generated at the beginning of the bull market rally. So, it's pretty important for NVDA to hold, if it wants to continue a general uptrend. Obviously, that will depend entirely on what happens in the cryptocurrency markets. If prices continue to fall there, you'd better believe that this stock is going to fall with it. It's very clear that the majority of this value that was created in NVDA , since 2016, is directly related to crypto mining demand. So, if that continues to fall, so too will NVDA . 

From the all time high, you can see that price fell rapidly, and then put in a small hump (next to first the blue arrow) then it produced a gap down. From there, price fell, produced another hump (second blue arrow) and then a major gap down followed. Now, NVDA has printed yet a third hump, just above a critical rising support line. So, if crypto breaks down hard below 3000, it's possible that we could see a continuation in this NVDA pattern, where another gap down is produced. 

If that happens, I will be ready to short NVDA , with an initial target at 119.60, followed by a gap fill at about 103. There are several other downside gaps to be filled, but we also have huge upside gaps too. Therefore, if a powerful hold is printed on the rising blue trendline , and if BTC begins to bounce off of 3000, we could see a gap fill at 195.50 on this stock. 
Regardless, there are many more downside gaps to be filled, and we know that there is a major slowdown in cryptocurrency mining right now. So, the likelihood is that, even if NVDA gets a short bounce, it will continue to fall as the demand from miners wanes. 

***This information is not a recommendation to buy or sell. It is to be used for educational purposes only.***