You often hear about ATH, but do you know exactly what it means? It’s a word that comes up no matter what when you’re trading, and in reality, it’s deeper than it looks.

ATH—meaning All Time High (spelled out as “all-time high”)—literally means “highest price,” but it’s not just a number. It’s an important point that reflects market psychology. It refers to the highest price level that a cryptocurrency has reached from the past up to the present, and the moment this level is reached becomes a time when investors are filled with a mix of excitement and anticipation.

In fact, ATH has a dual nature. Everyone knows that buying at the low and selling at the high can bring big profits. But if you buy after an ATH has been reached, the risk of losses increases during the subsequent correction phase. That’s the tricky part.

When the market updates an ATH, it’s usually in a state where the bullish side is creating strong upward pressure. It’s not a situation of oversupply or intensifying selling pressure—rather, it’s when buyers are absorbing the market’s supply one after another. However, after that, it’s common to see a correction period that lasts from several weeks to several months.

As the price approaches an ATH point, what becomes important in technical analysis are tools like Fibonacci and moving averages (MA). Fibonacci ratios of 23.6%, 38.2%, 50%, 61.8%, and 78.6% work as support and resistance levels. If the price falls below the MA, a downtrend is likely; if it rises above, an uptrend is more likely. By mastering tools like these, you can improve the accuracy of your decisions during ATH phases.

The breakout process often happens in three stages. First is the “action” stage, where the price breaks above a resistance level with high volume. Next is the “reaction” stage, where buying pressure temporarily weakens and the price drops. Finally is the “resolution” stage, where it’s determined whether the trend will be confirmed or reversed.

To protect profits during ATH phases, investors should follow a few rules. It’s important to check candlestick patterns right after the breakout—for example, rounded bottoms or rectangular bottoms. Then use Fibonacci extensions to identify the next resistance levels, such as 1.270, 1.618, 2.000, and 2.618. And decide in advance where you’ll take profits. You also need to be careful—only increase your position when the risk-to-reward ratio is favorable.

Position management when ATH is reached changes depending on your trading style. If you’re a long-term holder, it might make sense to keep everything. But most investors choose to take partial profits. In that case, it’s practical to make your decision by combining psychological resistance levels with Fibonacci extensions. By comparing the lows that formed past ATHs with the lows that formed the current ATH, you can see whether the current ATH is temporary or sustainable.

Bitcoin’s current ATH is $126.08K. While keeping this kind of history in mind, evaluate the market situation and make decisions that match your investment goals. If you have experience or ideas from ATH phases, please share them.