ATH in crypto: what is it and how to make money from it?

BTC is currently trading around $91K, and the crypto community is once again starting to chatter about historical highs. Let's figure out what this actually means and how not to get caught on the rocket to the ceiling.

ATH — this is just the maximum in the entire history

ATH (All-Time High) — is the highest price of an asset since its inception. Not yesterday, not in this quarter, but ever. For Bitcoin, it was $69 040 in November 2021. Each coin has its own record.

Why is this important? Because:

• Shows the ceiling of demand for the asset
• The psychological resistance level for the price
• The signal of a boom in the market ( if a new ATH - it means the FOMO wave is real )

By the way, there is also ATL — the historical minimum. This is the other side of the coin. If the price has fallen to ATL, it does not mean that it will fall further — rather, it is a good entry point if the project is still alive.

What happens when the price touches ATH?

Here the interesting part begins. The market is divided into two camps:

• Profits are being fixed — those who bought long ago and want to cash out in long.
• FOMO wave — newcomers who see news about ATH and are ready to jump into longs at any price

Volatility and pullbacks usually occur. ATH becomes a resistance level from which the price bounces off.

Two Trading Schemes on ATH

Bullish strategy: breakout upwards

If the price has broken through the ATH strongly — this could be the beginning of a new surge.

What to do:

1. Check if there is a real bullish momentum (charts, volumes, news)
2. Wait for the confirmation of the breakout ( to avoid catching a false signal )
3. Enter when fixing above ATH
4. Set the stop slightly below the broken level
5. Fix profits according to the plan, do not wait for the moon.

But remember: breaking ATH does not guarantee further growth. Often this is a fake-out, and then a correction.

Bear strategy: pullback down

After an ATH, a pullback usually follows. This is natural.

What to do:

1. Wait for the momentum to weaken (volumes to drop, candles to become smaller)
2. Ensure the reversal of ( breakout of support levels, RSI/MACD signals )
3. Open a short after confirmation
4. Stop above ATH ( in case the wave continues )
5. Take profit at the first levels of support

Main Feature

ATH is not the end of the world and not a signal to buy. It is just information about market psychology. When everyone is talking about a new ATH, it is usually a sign of overheating. When it's quiet, it may be a good entry point for the long term.

Main thing: trade by plan, not by emotions. FOMO kills portfolios faster than a bear market.