What is ATH in the world of cryptocurrencies? My subjective opinion

Again this crazy market! Here I am, watching Bitcoin approach $120,000, and remembering 2021 when everyone was shouting about the "moon." Back then, on November 10, BTC reached the mark of $69 040.10 - its historical maximum, or what they call - ATH. Now, as the halving approaches and the market is boiling again, all everyone talks about is these damn ATHs. But what is it really?

ATH - not just numbers on the screen

ATH (All-Time High) - the highest price that a coin has ever reached in its entire existence. Simply put, this is the peak at which the lucky ones sold, and the unfortunate ones bought. I myself have fallen into this trap several times - buying at the very top, and then watching my deposit melt away for months.

Cryptocurrency prices change every second, so ATH is just a reference point at a specific moment. Some smart ones keep an eye not only on the price but also on the market capitalization. If a project burns tokens, the capitalization can grow even without a change in price. Cleverly thought out, I must say.

Where did this term come from?

Traders are always interested in two things: "what is the current price?" and "what was the maximum price?" And not just out of curiosity - by comparing these indicators, one can roughly understand how much the asset has fallen from its peak and how much it can potentially grow.

The term comes from the world of traditional finance. There, reaching an all-time high usually indicates that the company is doing well. In crypto, it can mean both real success for the project and just typical hype over nothing - this happens all the time here.

ATL - the twin brother of ATH, only with the opposite sign

ATH has an opposite indicator - ATL ( All-Time Low ) or historical minimum. This is the lowest price of the asset in its entire history. When a coin updates its ATL, panic in the market reaches its peak. Smart investors often take advantage of these moments to buy, but it takes nerves of steel to buy when everyone is selling.

It is important to understand that ATL does not guarantee that the price will fall back to this level again. Some projects, having reached the bottom, never return there again. Others, on the contrary, only continue to set new lows until they are completely devalued.

What Happens in the Market When ATH is Reached

When cryptocurrency reaches ATH, the market goes crazy. Greed goes through the roof, everyone talks only about how they "made a fortune". Some traders (smart) start to take profits, while others (usually newbies) fall for FOMO and throw in their last money. I myself have fallen for this bait more than once.

Most trade on breakouts - if the price confidently breaks through ATH, many believe this is just the beginning and buy in hopes of further growth. However, often after a new historical high, there is a sharp pullback. I personally have seen people lose millions in a matter of minutes after buying "at the very top."

It's smarter to use a pullback trading strategy - wait for the hype to settle down and the price to drop a bit. However, guessing the reversal moment is a whole art.

In the end, the cryptocurrency market is like a roller coaster. When everyone is shouting about new ATHs, I usually start to sell a bit. And when everyone is in a panic over ATL, I look for buying opportunities. It doesn't always work, but it's definitely better than running with the crowd.