All-time high breakout 101, PART 1
Crypto is a wonderful place full of opportunities if you play your cards right. I’ve been through ups and downs, blew up twice — lost 95% of my portfolio. You can blow up almost entirely and still get the chance to recover if you have learned from your failure and have the right tools. Learn to bulletproof your workflow and honour some of the most established traders’ rules.
Rule №1: Ideal scenario for a bull is proximity for all-time highs
This is something that Dan from TCG (The Chart Guys) irregularly but often explains in his videos. Any second a token is traded, it creates its own price history. Weak price action creates bagholders. This is slang for people who bought in and their position is only declining. They might be quicker to sell if the price returns closer to their entry or to sell at a loss no matter how big or small. This creates selling pressure. No token strength, no gains.
On the other hand, if a token has strong price action, no matter the reason, you can identify it easily just by looking at charts. It starts trading at higher and higher prices. Something magical happens when a token gets to its highest price ever achieved and breaches. Everybody is in profit. Such a token has no bagholders, and everybody is winning. We have a name for this, and we call this situation an All-time high breakout or blue sky breakout.
Here is a quick little explanation from Dan, TCG. Watch 20:47 to 21:15, after that, it gets technical. Second completely unrelated way of explanation here from Donalt, one of the people I trust the most in the whole crypto sphere. See the video from 1:05:12 to 1:06:05 to understand why traders’ money is best spent flowing into new projects breaking ATH and generally on projects showing signs of strength.
Now, an example. Bitcoin created its first mentionable high in January 2012, which was breached on 12. Jul 2012. If you bought back then, no matter what happens to Bitcoin price unless it fails completely, due to such a low purchasing price, Bitcoin will be probably forever in a raging bull market n BTC USD
And so the best part is, you don’t need to catch the first ATH breakout. You just need to catch an ATH breakout and plan your exit.
Head up to the Signull platform to set up your own ATH filter and alerts and play around.
Stay ahead and not miss out on some of the most important setups in crypto.
