What is All-Time High (ATH)?
ATH or all-time-high is the highest price point that an asset has reached in its history.
All-Time High can be coupled with its inverse, the all-time-low. In crypto, these price points are often considered to be big news for an asset, and often make waves throughout the community. Many use these price points as important indicators for investment as they potentially inform users about the prospects of an asset.
Though it is worth noting that many consider the market fluctuations generated via the hype of an ATH or ATL to be misleading, often motivating investors through psychological biases rather than sound logic, with some observers referring to ATH as a ‘vanity metric’’
Understanding Record Highs
This ATH is used by investors to inform them about the potential strengths or weaknesses of an asset. Some investors couple information about an asset’s ATH with underlying market and performance indicators. By using the assets history, financial viability, and overall fundamentals investors can know when and how to invest in an asset.
Some investors do not use ATH as simply a means of preempting greater and greater levels of asset profitably. For some, a moment of ATH can indicate that the price may reasonably begin to fall after such a high, and such represents a tantalizing opportunity for shorting.
Therefore it is wise for investors to use a broad range of indicators including the ATH and ATL when making investments.