About Lesson
The opposite of ATH, the All-Time Low (ATL), is the lowest price of an asset. For example, the All-Time Low of BNB was 0.5 USDT on the BNB/USDT market pair on the first day of trading.
Breaking an All-Time Low on an asset can lead to a similar effect as when breaking the All-Time High – but in the opposite direction. Many stop orders may trigger when the previous All-Time Low is breached, leading to a sharp move down.
Since there is no price history below the previous All-Time Low, the market value can just keep going down, drifting lower and lower. Since there aren’t necessarily logical points for it to stop, buying during such times is very risky.
Many traders will wait for a confirmed trend change by an important moving average or some other indicator to even consider entering a long position. Otherwise, they could end up holding the bag for a long time, trapped in a position that keeps going lower and lower.