The cryptocurrency market is known for its cyclical nature—periods where Bitcoin dominates alternate with explosive growth in altcoins. Recognizing these shifts early can significantly improve investment outcomes. The Altseason Index (Top 10) is a powerful analytical tool designed to help traders identify whether the market is entering an altseason or a Bitcoin season. By measuring the relative performance of top altcoins against BTC, this indicator offers actionable insights rooted in data.
This guide breaks down how the index works, how to interpret its signals, and why it’s a must-have addition to your crypto trading toolkit.
What Is the Altseason Index (Top 10)?
The Altseason Index (Top 10) evaluates whether altcoins are outperforming Bitcoin over a 90-day period. Inspired by the well-known Blockchain Center Altcoin Season Index, this version focuses on nine major altcoins:
- Ethereum (ETH)
- Binance Coin (BNB)
- Cardano (ADA)
- XRP (XRP)
- Solana (SOL)
- Polkadot (DOT)
- Avalanche (AVAX)
- Shiba Inu (SHIB)
- Chainlink (LINK)
By analyzing how many of these assets outperform Bitcoin within the selected timeframe, the index generates a score from 0 to 100, providing a clear visual signal of market momentum.
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How Does the Altseason Index Work?
Understanding the mechanics behind the index empowers traders to use it more effectively. Here’s a step-by-step breakdown:
Step 1: Performance Comparison Over 90 Days
For each of the nine altcoins, the script calculates the percentage price change against Bitcoin over the past 90 days. Bitcoin’s performance serves as the benchmark.
Step 2: Count Outperforming Altcoins
An altcoin “outperforms” BTC if its BTC-denominated price has increased during this period. For example, if ETH/BTC is up 20% while BTC/USD is up 10%, ETH counts as outperforming.
Step 3: Calculate the Index Value
The index uses a simple formula:
Index = (Number of outperforming altcoins ÷ 9) × 100
This results in a score between 0 and 100, which indicates market bias.
Step 4: Interpret the Zones
The index divides market conditions into three zones:
- Above 75 (Green Zone): Strong altseason — at least 7 out of 9 altcoins are beating Bitcoin.
- Below 25 (Red Zone): Bitcoin season — fewer than 3 altcoins are outperforming.
- Between 25 and 75 (Neutral Zone): Mixed market — no clear dominance.
These thresholds make it easy to spot transitions between market cycles.
Visual Representation and Chart Integration
When applied to a chart, the Altseason Index provides an intuitive visual layout:
- Blue Line: Represents the current index value (0–100).
- Green Horizontal Line at 75: Threshold for altseason.
- Red Horizontal Line at 25: Threshold for Bitcoin season.
- Shaded Backgrounds: Green fill highlights altseason zones; red fill marks Bitcoin dominance periods.
Traders typically apply this indicator on daily charts for optimal accuracy, though it can be adapted to other timeframes depending on trading style.
Pro Tip:
Ensure your exchange symbols match those supported by your charting platform (e.g., BINANCE:BTCUSDT, BINANCE:ETHUSDT). Mismatched tickers may lead to incorrect data readings.
Practical Use Cases and Trading Strategy
The Altseason Index isn’t just theoretical—it has practical applications across different trading strategies.
When the Index Is Above 75
This signals a strong altseason. Traders might consider:
- Allocating more capital to promising altcoins.
- Rebalancing portfolios away from BTC-heavy positions.
- Watching for breakout patterns in mid-cap alts that may follow leaders like ETH or SOL.
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When the Index Is Below 25
Bitcoin is in control. In such environments:
- Focus shifts to accumulating BTC.
- Altcoin positions may be reduced or held defensively.
- Traders often wait for signs of rotation back into alts before re-entering.
Neutral Zone (25–75)
This range suggests uncertainty or transition. It’s wise to:
- Monitor macroeconomic factors and BTC dominance trends.
- Avoid aggressive bets until a clear trend emerges.
- Use dollar-cost averaging (DCA) to build positions gradually.
Limitations and Important Notes
While highly useful, the Altseason Index comes with caveats:
- Limited Altcoin Scope: Only nine altcoins are included due to technical constraints in TradingView’s
request.security()function. While these represent some of the largest by market cap, they don’t capture the entire ecosystem. - Market Cap Bias: The index treats all nine coins equally, regardless of size. A surge in SHIB carries the same weight as one in ETH, which may skew perception.
- Lagging Indicator: Since it relies on 90-day performance, it reflects past momentum rather than predicting future moves.
Nonetheless, when combined with volume analysis, on-chain metrics, and macro trends, it becomes part of a robust decision-making framework.
Open-Source Transparency and Community Trust
One of the most commendable aspects of this indicator is its open-source nature. Created with transparency in mind, the script allows traders to inspect its code, verify logic, and ensure there are no hidden manipulations—a core principle upheld by platforms like TradingView.
While free to use, redistribution or replication must comply with community guidelines to maintain integrity and prevent misuse.
Frequently Asked Questions (FAQ)
What defines an "altseason"?
An altseason occurs when a significant number of alternative cryptocurrencies outperform Bitcoin in terms of price growth. It often follows major Bitcoin rallies and is driven by increased speculative interest in smaller-cap digital assets.
Can I customize the altcoins in the index?
Not directly within the standard script due to platform limitations. However, advanced users can modify the open-source code to include different assets based on their strategy.
Is the Altseason Index predictive?
No—it's a lagging indicator based on historical performance. It helps confirm ongoing trends but should not be used alone for forecasting.
How often should I check the index?
Daily monitoring is ideal, especially during volatile periods. Weekly reviews suffice during stable or sideways markets.
Does a high index guarantee profits in altcoins?
Not necessarily. While a reading above 75 suggests favorable conditions, individual project fundamentals, market sentiment, and broader economic factors still play crucial roles.
Where can I apply this indicator?
It's primarily designed for TradingView, where it can be added to any chart supporting Pine Script. Ensure your broker or exchange integrates with TradingView for seamless access.
Final Thoughts
The Altseason Index (Top 10) is more than just a number—it's a window into the evolving dynamics between Bitcoin and the broader crypto market. By offering a quantifiable measure of altcoin strength, it helps traders make informed decisions about portfolio allocation and timing.
Whether you're a seasoned investor or new to crypto, integrating this tool into your analysis can sharpen your edge in navigating market cycles.
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