Cryptocurrencies are known for their volatility. Their prices may grow and deflate quickly. Traders and investors pay attention to various patterns and milestones indicating market sentiment, which is important for choosing the right moment to enter or exit the market/position.
Reaching the historical maximum or historical minimum can serve as a strong sell or buy signal for this asset. The dynamics of reaching these absolute peaks and troughs can also influence the sentiment towards the given cryptocurrency. If the token struggles to update its all-time high for years, it may draw some skepticism toward the asset’s potential. This article explores the terms ATH (all-time high) and ATL (all-time low) and shows their significance for crypto traders and investors.
What Is ATH (All-Time High) & ATL (All-Time Low) in Crypto?
ATH and ATL are the acronyms often used in discussions about cryptocurrency prices. They mean all-time high and all-time low, respectively. Every cryptocurrency has its ATH and ATL, and there can’t be two ATHs or ATLs. It’s always the only one ATH and the only one ATL.
If the given cryptocurrency is traded for, let’s say, five years, it has the maximum price that was reached at some point and a minimum cost. These prices are called all-time highs and all-time lows, respectively. It’s important to realize that these values are not constant. As soon as the price reaches a new maximum or drops below the historical minimum, the all-time high (or low) is updated.
These extreme values are important for crypto investors and traders as they clearly indicate how big or small the price of the asset can potentially get. If it happened once, it could possibly happen again.
The Significance of ATH & ATL in Crypto Trading, Investing and the NFT Space
The all-time high is a strong bullish signal. Any time some popular cryptocurrency reaches or updates its all-time high value, it gets media coverage, buzz in the community, and solid bullish support. The updates of the Bitcoin’s or Ether’s all-time high values have the biggest impact on the market and media space.
Cryptocurrencies with solid market presence usually don’t update their all-time lows as their prices don’t drop that hard even in the severe bearish period. They may lose 20% within a day but still exceed the ATL. The ATL that hasn’t been updated in years is one of the signs of a successful project. Strong cryptos tend to grow steadily over time. Their prices are moving in an upward zigzag trajectory.
The all-time low can be seen both in positive and negative ways. If the project doesn’t show signs of steady development and then hits ATL, it may mean that this cryptocurrency is weak and isn’t likely to take off anytime soon. Hitting ATL may be seen as a red flag for investors.
On the other hand, if the dev team is working relentlessly on the project but for some reason, its price drops, reaching an unprecedented minimum value, it may just be seen as a buying opportunity. If you are sure the project is here to stay and will eventually grow more prominent, there is no better moment to buy in than the all-time low.
It’s understood that seeing crypto hit ATL may be demoralizing and demotivating. However, emotions are the enemies of traders and investors. The project that shows the ability to recover from ATLs quickly keeps its reputation as a strong asset, which is lucrative for investors and traders.
Bitcoin’s Historical ATH & ATL
Let’s use the example of Bitcoin to showcase the significance of ATH and ATL. As of September 14, 2024, the Bitcoin all-time high is $73,750. It was reached on March 14, 2024, only six months prior to the day when this article was written, which is impressive, considering that Bitcoin has been traded for 14 years and still manages to break its own records.
Coinmarketcap names $0.04865 as Bitcoin’s all-time low. Allegedly, Bitcoin had this price on July 14, 2010 (it is the earliest BTC price data displayed on Coinmarketcap). Considering that Bitcoin was created in 2009, it had its lowest price around the earliest days, and never since July 2010 has its price dropped below 4.8 cents. This confirms Bitcoin’s overall consistency as an ever-growing asset.
So, when discussing Bitcoin, we won’t usually discuss its all-time low but rather its downfalls. Bitcoin may quickly lose $10,000 in price and still be above $50,000. Some influencers or media outlets can pronounce Bitcoin dead, but it will still be one of the most expensive assets in the world and still far from its all-time low.
Bitcoin’s ATHs usually make waves across the crypto market, attracting new investors and traders and inspiring new cryptocurrency projects. At the same time, every record-breaking price is also a result of an uptrend and the already-existing confidence of bullish investors.
In December 2017, Bitcoin peaked at nearly $20,000. The BTC price skyrocketed due to the ICO craze that was taking place at the time. Another possible reason is alleged price manipulation. For the next several years, $19.5k was Bitcoin’s ATH.
The 2017 growth was unprecedented, as in previous years, the BTC price was below $1,000. That rally turned more people into crypto enthusiasts and brought institutional investors into the industry. Cryptocurrency has become both a serious and popular enterprise.
Only in 2021 Bitcoin managed to top its ATH. Interestingly, in that year, Bitcoin set a new record price twice. In April, the BTC price exceeded $60,000; in November, it reached $69k. The reasons for the 2021 rally included the NFT media buzz, Elon Musk tweets alongside Bitcoin adoption from Tesla, Bitcoin adoption as a legal tender in El Salvador, the first significant system upgrade in four years, the launch of the first US Bitcoin future ETFs, and so on.
As a result, Bitcoin and other cryptocurrencies gained more popularity. Governments around the globe began to pay more attention to it and work on regulations. The launch of BTC ETFs in 2024 pushed the price even further resulting in another ATH which occurred on March 14 at $73k. The pessimistic spirit of 2018 is no longer there even when the BTC price drops.
Ethereum’s Historical ATH & ATL
Ether is the second cryptocurrency after Bitcoin in terms of market capitalization and one of the most important and influential brands in cryptocurrency. Unlike Bitcoin, it didn’t update ATH in 2024. However, ETH has all the characteristics needed to rule the cryptocurrency space, and it went through the spring of 2024 rally just like all cryptocurrencies.
The Ether all-time high is $4,891, which was reached on November 16, 2021. It was during a huge 2021 rally in which Bitcoin and many other cryptocurrencies updated their historical maximum prices. The Ether all-time low is 42 cents. ETH was traded at 42 cents on October 21, 2015, in the earliest days of its existence. Being consistently atop ATL is a sign of Ether’s longevity.
The reason for not updating ATH in 2024 may be associated with the overall growth slowing down caused by the major shift in the Ethereum system known as the Merge. This process leads to Ethereum becoming an eco-friendly, deflationary, cheap, and fast network. In the transition period, the ETH price may not perform as well as before.
ETH price started to decline after the Merge process began in 2022. In the long term, the Merge should improve the overall Ethereum network and bring it to new heights.
Conclusion
The all-time high and all-time low may seem to be simple statistical reference points, but these values are something bigger. They signal the cryptocurrency’s potential power (or loss of power) and help shape and consolidate the market sentiment.
Judging by the dates of ATH and ATL experienced traders and investors judge about the potential of a given crypto asset.