ATH: when your crypto hits the sky ( but is it time to sell? )

We all want that magical moment: buy low, sell high. But here comes the plot twist: when an asset reaches its All Time High (ATH) — the highest price it has ever reached — it’s exactly when most traders lose money. Why? Because FOMO takes over and analysis goes out the window.

The Real Problem with the ATH

When a crypto hits ATH, the market has already absorbed almost all available supply. What you see on the candles isn’t sustainable strength, but the last push from the bulls before smart sellers step in. After the peak, it’s normal for the price to enter a prolonged correction — weeks, months — while the market decides if that rise was justified or just hype.

Inexperienced traders who buy at ATH often suffer two things:

1. Immediate losses when the price reverses
2. Psychological block waiting for it to return to ATH to break even

How to Trade Smartly at ATH

1. Use Fibonacci as a compass

Before taking a position near ATH, measure from the previous bottom to the breakout. Key levels are: 1.270, 1.618, 2.000, and 2.618. If the price hits ATH exactly at an important Fibonacci level, that may indicate that the uptrend is ending, not beginning.

2. Analyze the three phases of the breakout

• Action: Price breaks resistance with high volume
• Reaction: Correction testing if the breakout is real
• Resolution: The candle confirming whether it continues or collapses

If the reaction fails (the price falls below the breakout), it’s a clear sell signal.

3. Moving average as a risk anchor

If the price is below the relevant MA (20, 50, 200 depending on timeframe), you’re in a downtrend, even if it appears at ATH. Don’t add positions until it moves back above the MA.

The 3 Options When You Are Inside an ATH

Option 1: Sell everything

• If Fibonacci aligns with ATH and there are bullish divergences in RSI/MACD, it’s time to exit with profit
• Maximize gains before the market corrects

Option 2: Sell partially (the smarter)

• Sell 50-70% at ATH
• Leave the rest with a stop-loss below the 50 MA
• This way, you capture more upside if it continues, but protect gains if it drops

Option 3: HODL everything

• Only if you have very long-term confidence (years, not months)
• But still, protect with a trailing stop in case of a sharp reversal

The Golden Rule: Risk/Reward

Never increase your position at ATH unless:

• The risk/reward ratio is at least 1:3 (risk 1 to gain 3)
• The price is touching support at the MA, not resistance
• Volume is decreasing (a sign of bearish weakening)

The Final Reality

ATH is a FOMO trap designed by the market. Those who get rich don’t buy at ATH; they take profits there. Those who lose are the ones who arrive late, hoping it will keep rising.

Next time you see an ATH in your portfolio, breathe. Analyze with Fibonacci. Check the MA. And then make a decision with a clear head, not emotion.