Overview
The Altseason Index (Top 10) is a powerful tool designed to gauge whether the cryptocurrency market favors altcoins (altseason) or Bitcoin (BTC season). By analyzing the 90-day performance of 9 major altcoins—ETH, BNB, ADA, XRP, SOL, DOT, AVAX, SHIB, and LINK—against Bitcoin, this indicator provides actionable insights inspired by the Blockchain Center Altcoin Season Index.
How the Altseason Index Works
Key Calculation Steps:
Price Comparison:
- Tracks the 90-day price change for BTC and the 9 altcoins.
- Counts how many altcoins outperform BTC during this period.
Index Formula:
[
\text{Index} = \left(\frac{\text{Number of Outperforming Altcoins}}{9}\right) \times 100
]- ≥75%: Signals altseason (green zone).
- ≤25%: Indicates Bitcoin season (red zone).
- 25–75%: Neutral phase.
Visualization Features:
- Blue Line: Current index value (0–100).
Threshold Markers:
- Green line at 75 (altseason).
- Red line at 25 (BTC season).
- Background Colors: Highlights altseason/BTC season zones for quick interpretation.
Practical Usage
Interpreting the Index:
- Altseason (≥75%): Consider diversifying into high-performing altcoins.
- BTC Season (≤25%): Prioritize Bitcoin investments.
- Neutral (25–75%): Monitor market trends before committing.
👉 Master crypto trading strategies to maximize gains during altseasons.
Pro Tip: Verify ticker symbols match your exchange (e.g., BTCUSD or BINANCE:BTCUSDT).
Limitations & Best Practices
Constraints:
- Limited to 9 altcoins due to TradingView’s
request.security()restrictions. - Optimized for daily charts but adaptable to other timeframes.
Recommendations:
- Combine with volume analysis and macroeconomic trends for robust decision-making.
- Avoid relying solely on historical performance—market sentiment can shift rapidly.
FAQ Section
1. What defines an "altseason"?
An altseason occurs when a majority of altcoins outperform Bitcoin over a sustained period, typically driven by increased risk appetite among investors.
2. How often should I check the Altseason Index?
Monitor weekly to capture trends, but daily checks are ideal for active traders.
3. Can the index predict future altseasons?
No. It reflects past performance—use it as one of multiple tools for market analysis.
4. Why are only 9 altcoins included?
TradingView’s API limitations restrict larger datasets, but these 9 represent high-liquidity assets with significant market influence.
5. How does this differ from the Blockchain Center’s index?
This version simplifies the calculation for TradingView users while retaining the core logic.
6. Should I exit altcoins if the index drops below 75%?
Not necessarily. Gradual exits with stop-loss orders may mitigate risk during transitions.
Final Thoughts
The Altseason Index (Top 10) offers a data-driven approach to navigating crypto market cycles. By identifying altseason signals, traders can strategically allocate portfolios between Bitcoin and altcoins.
👉 Explore advanced trading tools to refine your strategy further.
Remember: Crypto markets are volatile—always DYOR (Do Your Own Research) and manage risk proactively.