The term “all-time high,” abbreviated as ATH, refers to the highest price ever paid for an asset. The all-time high value represents the maximum price a trader was willing to buy that asset for during that period.
This term has been used for decades to refer to stocks in traditional financial markets. And in this article, you will understand the term all-time-high (ATH) and everything about it.
What Is All-Time High (ATH)
“All-Time High” (ATH) refers to the highest price (or market cap) that an asset has reached since its listing or inception. The all-time high is often quoted in financial assets since it shows the theoretical potential of the asset. However, there is no guarantee that the asset will be back at its all-time high again.
An asset reaching a new ATH can provide both opportunities and pitfalls for traders. If the asset is reaching a new ATH on a regular basis, traders can recognize the upward trend, and invest accordingly. However, a strong technical and fundamental analysis is also necessary in order to determine when the asset price will hit its resistance and begin to drop again.
An all-time high should not, in and of itself be used to develop a trading strategy, but it can – and should be – one of several tools taken into account.
When an asset hits an ATH, it will be down to several factors but it is essentially down to supply and demand. It means that someone, somewhere, is willing to pay that amount for the asset. Many long-term investors, or holders, will look at the potential for an asset to hit ATHs in the coming years when they look at its viability as a long-term investment.
Many crypto assets set new All-Time High records during the late-2017 bull run, with Bitcoin setting a new ATH in mid-December. Each crypto-asset exchange has a different Bitcoin ATH value. In some markets, each coin was trading above the $20,000 mark, but many believe that Bitcoin’s ATH was around $19,665.
Understanding the cryptocurrency might be a long journey but starting by understanding the crypto glossaries will make the journey a lot easier.
All-time-high as stated above is the highest price an asset has ever reached and having knowledge of it is very important for our dear coin marketers. Hope this was helpful? Leave a comment below.