Have you heard of ATH? If you’re involved in trading, I think it’s a moment you’ve definitely become aware of at least once.

ATH (All Time High) means “record high,” but it’s not just a number; it’s a moment where market psychology is condensed. When a crypto asset reaches a new all-time high, it indicates that investor expectations and bullish buying pressure are at their maximum. For Bitcoin, it recently hit $126.08K.

Many people fail at this point. They know that buying at the lowest and selling at the highest yields profit, but they end up buying when the ATH is reached. Then, during the subsequent correction phase, they suffer losses. That’s the usual pattern in the crypto market.

When an ATH appears, the market absorbs almost all available supply. But afterward, it enters a testing period lasting several weeks to months. Whether you understand this correction phase determines if you can protect your profits or suffer losses.

For actual trading decisions, using Fibonacci retracements is effective. The levels at 23.6%, 38.2%, 50%, and 61.8% serve as support and resistance relative to the rise from the ATH’s bottom. Additionally, Fibonacci extensions (1.270, 1.618, 2.000, 2.618) can help predict the next resistance levels.

Moving averages are also important. If the price is below the MA, it suggests a downtrend; if above, an uptrend is likely. Near the ATH, this judgment is especially crucial.

The breakout process occurs in three stages. First, during the action phase, the price updates the high; second, in the reaction phase, a correction occurs; finally, in the resolution phase, it’s judged whether an uptrend is confirmed. Rushing to add positions during this can lead to painful losses during the correction.

Position management points: When reaching an ATH, you have three options—take partial profits, hold everything, or sell everything. Long-term holders should calmly analyze whether the current ATH is temporary or genuine before deciding. Most investors opt for partial sales, but even then, it’s wise to measure psychological resistance levels with Fibonacci before acting.

The key is that intuitive decisions at ATH are risky. Set profit protection levels based on technical analysis in advance. Only increase your position when the risk-reward ratio is favorable. If you follow this, you can maximize profits calmly even at ATH.

How do you decide during ATH phases? I’d love to hear your experience and thoughts on position management in such markets.