Crypto Industry Outlook:
While the value of digital currencies has skyrocketed over the course of the year, Nvidia has not made any significant gains from its line of Cryptocurrency Mining Processors (CMPs).
According to Nvidia's third fiscal quarter report, the company's CMP sales fell 60% in the final quarter, with product line sales expected to decline even further in the fourth quarter.
In its quarterly financial report, Nvidia said CMP sales fell from $ 266 million in the second quarter to $ 105 million in the third quarter, which ended in October.
Nvidia says it grossed $ 526 million over the lifetime of the product, which is about 3% of its total revenue of $ 19.27 billion over that period. The company's total income was driven almost entirely by the gaming industry, data centers, and professional visualization equipment.
The past quarter did not differ in terms of CMP sales revenues. The company exceeded Wall Street's expectations, generating more than $ 6.5 billion in profit. Despite this, it failed to achieve the target profitability of its GPU line for cryptocurrency mining for the second quarter of 2021.
While CMP has yet to gain significant attention, Nvidia's profits have not been affected. Its value increased by almost 123% this year. Overall sales grew 50% year-on-year, with $ 3.2 billion in sales of graphics cards to gamers and PC builders in one quarter, according to a published company report.
Technical Market Outlook
The BTC/USD pair has terminated the ABC corrective cycle at the level of $55,566 and might bounce towards the technical resistance seen at the level of $62,188. The next big target for BTC is seen at $70,000, but the first target for the wave 5 is located at $70,508. Nevertheless, the wave 5 might had been terminated at the level of $68,987 already and now the market is developing the corrective cycle. The momentum is weak and negative, which supports the short-term bearish outlook for BTC. The nearest technical support is seen at the level of $55,748.
Weekly Pivot Points:
WR3 - $74,186
WR2 - $71,563
WR1 - $67,476
Weekly Pivot - $68,414
WS1 - $60,726
WS2 - $58,026
WS3 - $54,090
Trading Outlook:
According to the long-term charts the bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $70,000. This scenario is valid as long as the level of $52,943 is clearly broken on the daily time frame chart (daily candle close below $52,000).