Have you heard of ATH? Officially, it stands for All Time High, pronounced “All Time High.” In the world of crypto assets, it’s a term you see all the time.

Simply put, it refers to the highest price an asset has reached from the past up to the present. For Bitcoin, the current ATH is $126.08K, but reaching that number means the bullish momentum across the entire market and investors’ expectations have been building over time.

What’s interesting is the process of reaching an ATH. First comes the “action phase,” when the price breaks through a resistance level and trading volume increases. Then, in the “reaction phase,” there’s a correction once, testing whether this trend truly continues. Finally, in the “resolution phase,” the momentum behind buying and selling shifts significantly, and it’s determined whether the breakout is confirmed. Whether you can understand this three-stage flow is what affects the quality of your trading.

If you look closely at the chart when ATH is reached, you often see basic candlestick patterns, such as rounded bottoms or square bottoms. Missing this is how people end up thinking, “That’s a high,” and rushing in. This is the pattern that inexperienced traders often fall for.

From the perspective of technical analysis, Fibonacci is important. Ratios such as 23.6%, 38.2%, 50%, 61.8%, and 78.6% can function as support levels and resistance levels. Especially near ATH, it can be effective to use Fibonacci extensions (1.270, 1.618, 2.000, 2.618, etc.) to forecast the next resistance levels.

Moving averages (MA) are not optional either. If the price falls below the MA line, a downtrend is likely; if it stays above it, an uptrend is more likely. During the corrective phase after an ATH, whether the MA acts as support often determines how prices move afterward.

Once an ATH is reached, investors are faced with 3 choices: keep holding everything, sell part, or sell everything. If you’re a long-term investor who believes in the value of the asset, you don’t necessarily need to sell it all at a single ATH. However, you still need to analyze calmly whether the current ATH is temporary or whether it’s the start of a new stage.

Most traders choose to sell part. In this case, it’s common to gauge psychological resistance levels and use Fibonacci to decide on sell points. It’s important to identify the bottom that formed the previous ATH and the bottom that formed the latest ATH.

Don’t forget to protect your profits, either. Decide the minimum profit level you want to achieve, and set a take-profit point in advance in case the price reverses. When increasing your position, limit it to times when the risk-reward ratio is favorable and the price is at (or near) the MA support level. If you don’t follow this, you can end up suffering major losses during the corrective phase after an ATH.

In reality, there’s no time when investor psychology is more shaken than during an ATH situation. Instead of relying on technical analysis, people may rely on intuition and make irrational decisions. But if you understand this three-stage process and use tools like Fibonacci and MAs, you can respond without being swayed by emotions.

How are you making decisions when ATH is reached? If you have any ideas for position management or experiences with mistakes you’ve made, please share them. I think exchanging this kind of practical insight is the shortcut to improving your trading skills.