All-Time High (ATH) Explained

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All-Time High (ATH) Explained

All-Time High (ATH) Explained

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What is ATH?

“All-Time High” refers to the highest or peak price level ever reached by an asset (cryptocurrency, stock, commodity) since its inception, or the beginning of available data.

For example, if an asset trades at $10 per unit on Monday and goes up to $20 but falls back to $15 on Tuesday, then the ATH price of said asset is $20.

Where is ATH Used?

Used not only in the crypto markets, the term ATH has been around since the early days of traditional finance.

ATH has been actively used to discuss stock prices for years, as it played a key metric in the traders’ analysis to figure out whether the company was performing well or not.

The term ATH has the same meaning in both crypto and traditional markets, and became widely used online after the popularity of crypto.

What Happens During an ATH?

When analyzing market trends, a common indicator signaling a major shift in the markets is the ATH, hence why understanding the concept of ATHs is crucial within the crypto industry.

It is often regarded that the market is considered bullish until it reaches ATH – which may represent a favorable buying opportunity.

However, once the cryptocurrency reaches its all-time high, trading trends dictate that this is the highest it can go for the moment.

Technically speaking, an ATH can be identified once the ATH is reached. As the price grows, it hits its peak, and then it drops. The severity of the drop depends on several factors, such as the market conditions.

If the market remains positive but the price meets a major resistance level, it could recover and reach a new ATH. Otherwise, the previous ATH is likely the start of a bear market.

What Can Traders Do with ATH?

An asset reaching a new ATH can provide both opportunities and pitfalls for traders. If the asset is reaching a new ATH on a regular basis, traders can recognize the upward trend, and invest accordingly.

However, a strong technical and fundamental analysis is also necessary in order to determine when the asset price will hit its resistance and begin to drop again.

An all-time high should not be used to develop a trading strategy, but it can – and should be – one of several tools taken into account.

Important ATHs in Crypto

The most notable crypto ATHs have always revolved around Bitcoin, signaling various bull and bear runs in the process. The first time BTC hit an ATH of $1 on February 9th 2023 was a historic moment for the crypto market as it proved the value of non-fiat currencies.

This was followed by another ATH set on April 9th 2013 for $213, and one more on November 28th of the same year where BTC broke $1000.

The asset reached its next all-time high on November 29th, 2017, four years after the last one. On this occasion, BTC crossed the $10,000 milestone, which was followed by the historic ATH of $20,000 on December 18th, 2017.

Following this, one of the harshest crypto winters ensued since the inception of Bitcoin. This clearly highlighted one of the key potential risks of an all-time high, where investors start a selling spree that leads to the spiraling down of an asset’s value.

The last recorded Bitcoin ATH, was November 9th, 2021 which was coincidently four years after the previous ATH, and this time, the price reached was $68,350. Once more, market participants started selling, which caused the price to spiral down. This time, Bitcoin sank to $16,133.

At the time of writing, this is the lowest price point BTC has fallen to since its last ATH.

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