What are ATH and ATL in crypto

What are ATH and ATL in crypto

What are ATH and ATL in crypto

Acronyms flourish in the world of cryptocurrencies. ATH and ATL are two examples of acronyms commonly used in this world. You have no idea what ATH and ATL could be? Then stay with us in this article.

What are ATH and ATL?

ATH stands for all-time high and ATL stands for all-time low. The all-time high of an asset refers to the highest price it has experienced in its lifetime, while the all-time low refers to its lowest price. You may have heard the expressions making an ATH or making an ATL. When an asset makes an ATH, it means that it passes its previous peak and makes a new peak. On the opposite side, when an asset makes an ATL, it goes below its previous dip and makes a lower low.

What do ATH and ATL signal?

ATH and ATL are strong resistance and support levels respectively. Making trading decisions when assets make an ATH/ATL depends on many factors and on your own analysis, but it is generally said that when an asset makes an ATH, it is likely to experience a pullback. Therefore, it’s recommended that you don’t enter the market when an asset makes an ATH, and wait till its price stabilizes.

On the other hand, making an ATL shows the asset has broken a strong support level. There is much dispute on how this signal is interpreted. Some crypto experts believe that when an asset makes an ATL, it is the most appropriate situation for buying the dip since the asset has reached its lowest possible price. Some others disagree, arguing that when the asset has succeeded to break such a strong support, it is likely to go even lower. Under any conditions, entering the market or exiting it when an asset makes an ATH/ATL is risky. Maybe the wisest action is to wait for the price to stabilize.

Conclusion

In this article, we explained what ATH and ATL are and what signals they might generate. We again insist that interpreting ATH and ATL is not an easy task, and it depends on many more factors. Have you ever traded an asset when making an ATH or ATL? How was your experience?