All time low, literally the lowest of all time, refers to the lowest price a security, commodity or index price has ever seen. All time low (ATL) is the lowest point of a financial asset's price since it was first introduced to the market, and it can be recorded based on year, month, week, or single trading day. The concept of ATL also refers to the lowest price at which a digital asset can be sold on the market.
During the ATL period, a digital asset in question is in a bear market and its price is often continuing to decrease. This can lead to high volume sales by investors and may trigger further price drops. ATL or any digital asset that has reached its lowest level, is in a downtrend, however, it also presents an investment opportunity. Many investors track ATLs and may use them to make leveraged trades based on the low price.
There are some factors that users who want to see this situation as an opportunity and want to evaluate it need to pay attention to. Before investing in a digital asset that is in the ATL process, it is necessary to evaluate macroeconomic events, stock exchange hackings, fluctuations in the sector, government regulations or whale sales. However, even after evaluating all these factors, record low levels indicate that the institution or sector has a problem.
What Is the All Time Low Process?
All time low can occur due to macroeconomic reasons or the emergence of bad news. The all-time lowest level can generally be seen in the initial period when a financial asset is first introduced to the market. All time low is generally seen in the early days when a financial instrument is first introduced to the market. Some investors may not trust newly listed digital assets, which can result in the asset's low price being among the reasons.A financial product can update its lowest price level per year, month, or day. When a digital asset reaches its ATL, it can signal to investors, and it's not always possible to avoid high-volume sales. As a result, the price may decline further.
There are also investors who want to take advantage of this situation by buying at the low. In such a situation, investors should analyze the development of the project or the reason for all time low in detail. Investors who buy at the low during ATL can sell at a high price if the relevant asset gains value later. Although buying at the low may seem simple, it cannot always be guaranteed to be profitable. An asset's ATL can also lead to further loss of value.
The opposite of the term “ATL” is “All Time High (ATH)”, which represents the highest price at which a digital asset has been traded.
How Does Bitcoin's (BTC) All Time Low (ATL) Affect the Cryptocurrency Market?
Bitcoin (BTC) is the first issued cryptocurrency and has been the largest cryptocurrency by market value for a long time. Many altcoins follow Bitcoin. When the price of Bitcoin rises, many other cryptocurrencies also experience an increase. When it experiences a price drop, however, besides some major stablecoins, other assets may experience a decline. As a result, a serious decline can be seen in the cryptocurrency market if Bitcoin experiences an ATL.
What Happens When a Cryptocurrency Reaches Its ATL?
When a popular cryptocurrency reaches its ATL level, it is a major event. Some of the owners of the cryptocurrency that reaches ATL may sell it, not wanting to hold on to the asset, which can cause further decline.
The all-time low level can create a rebound in the asset's price. Some investors see this situation as an opportunity to buy at the low. Whether the price will improve or not depends on what caused the ATL.
