What is 52 week high?

Could you please explain what exactly is meant by the term "52 week high" in the context of finance and specifically in relation to cryptocurrency? I'm curious to understand how this metric is calculated and what significance it holds for investors and traders alike in assessing the performance and potential of a digital asset. Additionally, how does this information factor into decision-making processes, and what are some common misconceptions or pitfalls to avoid when interpreting this data?