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The promise of a disruptive, emerging technology that could entirely replace money as we know it, caused a digital age gold rush of investors hoping to strike it rich by buying crypto assets.

One shining example of this was an investor who went on to earn $13 million from an early investment in Ethereum. But although the story had a happy ending, it could have all gone wrong and there were many ups and downs along the way.

Dan Conway Risks it All on Crypto, Turns $300,000 into $13 Million

Dan Conway was a former middle-manager at a multimedia corporation located in San Francisco, who first became interested in cryptocurrencies in mid-2015, just as Bitcoin started to come out of a bear market.

While he had heard about the cryptocurrency earlier, at first he decided that spending “real currency” on “some digital token” was “complete bullshit.” But because Bitcoin had crashed from a high of around $1,200 to $300, Conway had a change of tune and thought about what might happen if the first-ever cryptocurrency rebounded once again.

“What if it goes up again? What if I put everything I had into this? I could get rich and never work another day in corporate America,” Conway thought to himself.

Conway was still leery, his all-in attitude could be viewed as destructive, and his self-proclaimed addictive personality had already brought him plenty of hardships throughout his life.

Related Reading | List of Crypto All-Time High Prices Shows How Far Market Must Recover 

But later, Conway convinced his wife Eileen to allow him to invest a sizable chunk of their life savings into Ethereum, which was only $14 at the time. Conway walked himself to a local Wells Fargo and wired enough funds to Gemini to buy 6,993 ETH.

Following the DAO hack, Ethereum’s price tanked, and Conway’s $100,000 investment quickly became worth less than $40,000, losing 60% of his life savings in what felt like an instant.

Then what Conway did next was an incredible risk, and while it paid off for the early Ethereum adopter, it could have gone terribly wrong.

With Ethereum prices at a then low, Conway borrowed $200,000 against his home’s equity and used it to buy another almost 20,000 Ethereum, taking his buy-in price to just $11.21 per ETH.

After the hack, Ethereum’s price went on a parabolic run fueled largely in part by the ICO boom and crypto hype bubble, and of course, with some help from Bitcoin bringing attention to the young market.

In just four months’ time, that $300,000 investment rocketed to a valuation of over $6 million. Conway recounts how some days he’d check his portfolio tracking app, to see his overall holdings rise or fall by $1 million in a single day.

Conway says he felt orgasmic-like euphoria at times when viewing his holdings, comparing it to “a narcotic, shooting up my brain with boosts of dopamine and serotonin.”

But when prices fell, he recalled snapping at his children, donning a hoodie, and suffered from panic attacks. Conway was even fired from his job of over six years.

Related Reading | Crypto Trader: Bitcoin Closes In On Life-Changing Golden Cross 

Conway eventually cashed out for a total of $13 million, paid off his home, took a trip to Africa that he and his wife had always dreamt of, and even bought a second home in Ireland.

Conway’s story is uncommon and chalks it all up to a lot of luck. But there’s no denying that Conway took a major gamble on crypto, and while it paid off handsomely, it could have resulted in complete loss of not only his investment, but his home, his job, and possibly his family.

Conway says that while he has returned to normal life since he often lies awake “thinking back on the rush of the market”. He says he misses it “like hell.”

Tony Spilotro , 2019-11-12 18:00:30

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

Featured Image from Shutterstock

Nick Chong , 2019-11-10 12:00:38

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