ATH is the most important term of the crypto market. The abbreviation is formed from the English "all time night". The index shows the highest value of asset price for the whole time of asset existence. It is often called the "historical maximum" in Russian.
ATH shows at what value an asset could be sold by lucky users, who had time to sell coins before the price fell. As we know, the cryptocurrency market is very volatile. That is, during the day the value of a coin can rise or fall by 5.10, and in rare cases - even by 50%.
Therefore, when the price reaches an all-time high, it is usually followed by a correction. That's what they call a drop in price after a strong rise. It takes place as some traders in the cryptocurrency sell the asset after waiting for a profitable moment.
Historic highs of cryptocurrencies is an indicator that can be used to analyze the future prospects of a coin. To find it out, you need to open the chart of the asset of interest. Let's take Bitcoin as an example.
As you can see from the chart, the highest point that the coin's price reached is about $68,000. This means that Bitcoin's all-time high(ATH) is $68,000.
You can find this indicator on the chart of each cryptocurrency. For example, on the chart of Ethereum - the second most popular coin.
The highest price point reached by this cryptocurrency is about $4800. So, this is exactly the value that is the ATH of Ethereum.
Thus, to find out the ATH of the cryptocurrency, you should proceed as follows:
- Open a chart of the cryptocurrency's price over time;
- Find the highest point on it.
An important thing here is to be aware that over time, historical highs of cryptocurrencies change, that is, they are "rewritten". The reason is that in the long run, the market, just like the price of key assets, is always going up. Therefore, the majority of cryptocurrencies set new ATHs after a correction, no matter how long it is.
The historical high of Bitcoin or another cryptocurrency is necessary to analyze the future prospects of the price. Experienced market participants know that:
- if the price has not yet fallen after reaching ATH, it means that it is risky to invest in the asset now, because usually after updating the historical maximum there is a correction, and the value of coins falls;
- the best time to buy cryptocurrency - when the price fell by at least 30% of ATH, and better - by 50-60%.
ATH is a handy tool to quickly analyze if you should buy a coin right now, or if it is better to wait for a possible correction. But it's important to realize that the market is unpredictable and even after reaching ATH the price is likely to continue growing.
The closing price is another useful tool for analyzing the prospects of a cryptocurrency. It refers to the value of an asset that it had at the end of the day, week or month. After all, due to volatility, the price is constantly jumping up and down. Therefore, there is no point in keeping track of the value all the time.
It's better to pay attention only to the closing price of each day. For example, if the closing price is falling (on day 1 it is $500 per coin, on day 2 it is $495, and on day 3 it is $472) - that means that there is a tendency of decrease in value.
Experienced traders usually buy assets after their value has been falling for a while, and sell them after they have been rising for a while.
There are a lot of platforms that offer to buy or sell cryptocurrencies. But not all of them are reliable. A novice user due to inexperience can easily run into a fraudulent service, and lose their money.
To avoid this, experts recommend choosing licensed platforms, the work of which is regulated by the state. Broex is exactly one of them. It's both a licensed cryptocurrency exchanger and a wallet. This platform is officially registered in Estonia, and has passed all the checks of the state regulatory bodies. This shows its reliability - you won't have to worry about your deposit when using Broex.
Broex offers its users:
- Custodial Wallet. Purchased cryptocurrency doesn't need to be withdrawn - you can trust Broex to store it. And you can get access to it at any time in your personal account.
- Simple interface. You won't have to deal with it for a long time. The company made sure that even a beginner can quickly understand how to buy and sell cryptocurrencies.
- Low commissions. Broex charges from 0.1% per transaction for its services. Such commissions are actually imperceptible and will have almost no effect on the size of your deposit.
- Instant deposit. With a bank card or via AdvCash.
- The minimum deposit is 1500 rubles. Everyone can buy Bitcoin or other cryptocurrency.
- Russian-speaking technical support. If any difficulties arise - the operator will help to quickly solve the problem.
Broex exchanger and wallet are used by both beginners and experienced users. It's reliable and convenient. Check it out for yourself - it takes 1-2 minutes to register.