Is buying coins at an All-Time-High (ATH) a good idea?

2 min read December 1, 2021
Richard Fetyko

Is buying coins at an All-Time-High (ATH) a good idea?

We all want the best price possible, and buying near an all-time-high (ATH) doesn’t feel like we are getting the best price.

Most investors fret when coins hit new highs, but should they?

No.

It turns out, buying coins at or near their ATH is a pretty damn good strategy.   Hitting ATH is a bullish indicator, at least in the near term.

Coins that are outperforming have a tendency to continue to outperform. All-time-highs tend to follow other all-time-highs.

This is how markets work.  When more dollars are trying to get into an asset than are trying to get out, prices rise.  And if this behavior continues, prices will continue to rise.  This is why all-time-highs tend to follow all-time highs.  Higher prices attract more buyers which attracts higher prices, etc.

Of course, this won’t last forever, but it can go on longer than you think.  This is why there is nothing wrong with striking while the iron is hot.

It’s a classic momentum strategy.

altFINS’ Screener can help you use all-time-high (ATH) indicator to identify and alert you of such trading opportunities.

In the following 6 min tutorial video, you’ll learn six different ways of using our ATH indicator to identify trading ideas:

    1. Coins within 5% of ATH
    2. Coin within 5% of ATH and had a recent bullish MACD crossover
    3. Coins within 5% of ATH and had a recent bullish inflection in MACD Histogram
    4. Coins that had a recent ATH, pulled back but MACD is starting to inflect bullish
    5. Coins within 5% of ATH but are not extremely overbought
    6. Coins that had a recent ATH, still within 10% of ATH, and are not extremely overbought