All-Time High (ATH) is a term that refers to the highest price point that an asset has reached since being listed. ATH level is often used as a reference to show an asset’s future potential. Despite the fact that it is often used as a benchmark, there is no guarantee that an asset can reach its ATH level again.
ATH also often represents a psychological barrier for an investor when buying or selling an asset. When the asset price nears an ATH level, there is a possibility that it will break through and move up to a new ATH. But, there is also a possibility whenever the price nears an ATH, that level will become a resistance area, and the price may move down soon.
In addition to using ATH as a reference, investors should use another indicator as a reference in making investment decisions.