The cryptocurrency market moves in cycles—sometimes Bitcoin dominates, and other times altcoins surge ahead in explosive rallies. Recognizing these shifts early can make a significant difference in portfolio performance. The Altseason Index (Top 10) is a powerful analytical tool designed to detect whether the market is entering an altseason or a Bitcoin season, helping traders and investors align their strategies with broader market momentum.
This indicator evaluates the relative strength of top altcoins against Bitcoin over a 90-day period, offering a data-driven approach to identifying trend shifts. By focusing on performance comparisons rather than price alone, it cuts through market noise and delivers actionable insights.
How the Altseason Index (Top 10) Works
At its core, the Altseason Index (Top 10) tracks the price performance of nine major altcoins—Ethereum (ETH), Binance Coin (BNB), Cardano (ADA), XRP, Solana (SOL), Polkadot (DOT), Avalanche (AVAX), Shiba Inu (SHIB), and Chainlink (LINK)—relative to Bitcoin (BTC) over a rolling 90-day window.
Here’s how it calculates market sentiment:
- Performance Comparison: For each of the nine altcoins, the script computes the 90-day percentage change in price.
- Outperformance Count: It determines how many of these altcoins have outperformed Bitcoin during the same period.
Index Score Calculation: The final index value is derived using this formula:
$$ \text{Index} = \left( \frac{\text{Number of outperforming altcoins}}{9} \right) \times 100 $$
The resulting score ranges from 0 to 100 and is interpreted as follows:
- Above 75: Strong altseason signal (green zone) — most altcoins are outperforming BTC.
- Below 25: Bitcoin season (red zone) — BTC is significantly outpacing the altcoin market.
- Between 25 and 75: Neutral territory — no clear market dominance.
👉 Discover real-time crypto signals that align with market cycles and boost your trading edge.
This simple yet effective methodology allows traders to visualize macro-level shifts without getting lost in individual coin narratives.
Visual Design and Chart Interpretation
The indicator presents data through an intuitive visual layout on trading charts:
- A blue line represents the current index value, moving between 0 and 100.
- A green horizontal line at 75 marks the threshold for altseason.
- A red horizontal line at 25 indicates the start of a Bitcoin-dominated phase.
- The background fills with green shading when the index exceeds 75 and red shading below 25, making trend identification instant at a glance.
Traders can apply this overlay on platforms like TradingView and use it alongside other technical tools for confirmation. Daily timeframes are recommended for optimal accuracy, though the index adapts well to weekly or even 4-hour charts depending on trading style.
Practical Use Cases for Traders and Investors
Understanding when capital rotates into or out of altcoins is crucial for timing entries and exits.
When the Index Is Above 75 (Altseason)
This suggests broad strength across the altcoin ecosystem. Traders might consider:
- Rotating funds from BTC into high-beta altcoins.
- Exploring emerging projects with strong fundamentals.
- Watching for increased on-chain activity and exchange inflows into altcoin pairs.
When the Index Is Below 25 (Bitcoin Season)
Bitcoin is absorbing market liquidity. In such phases:
- Defensive positioning favors holding BTC.
- Altcoin positions may underperform or face higher volatility.
- Accumulation of quality altcoins at lower prices could be strategic for future rotations.
👉 Access advanced trading tools that help you act on market cycle signals faster.
Neutral Zone (25–75)
This range often reflects consolidation or uncertainty. It's ideal for:
- Researching undervalued projects.
- Monitoring volume and macroeconomic triggers.
- Preparing watchlists for breakout candidates.
Key Limitations and Considerations
While highly informative, the Altseason Index (Top 10) has certain constraints:
- Limited Altcoin Scope: Only nine altcoins are included due to technical limitations on TradingView’s
request.security()function. While these represent some of the largest by market cap, they don’t capture the entire altcoin universe. - Equal Weighting: Each coin carries equal weight regardless of market size, meaning smaller-cap coins like SHIB impact the index as much as ETH or SOL.
- Lagging Indicator Nature: As a 90-day rolling measure, it reflects past performance rather than predicting future moves outright.
Nonetheless, its transparency and simplicity make it a reliable gauge of prevailing market sentiment.
Open-Source Transparency and Community Trust
True to the collaborative spirit of TradingView, the creator has released this script as open-source, allowing traders to inspect, verify, and learn from its logic. This transparency builds trust and encourages community-driven improvements.
While free to use, redistribution of the code must comply with platform 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 consistently outperform Bitcoin in terms of price growth. It often follows periods of BTC dominance and is fueled by increased investor risk appetite, new project launches, or technological upgrades across blockchain networks.
Why only nine altcoins?
Due to technical restrictions on TradingView’s scripting environment—specifically the limit on request.security() calls—the indicator includes nine major altcoins. These were selected based on market capitalization, liquidity, and long-term relevance in the crypto ecosystem.
Can I use this on any timeframe?
Yes, but daily charts provide the most reliable signals. Shorter timeframes may generate false readings due to volatility, while longer timeframes smooth out noise but reduce responsiveness.
Does a high index guarantee altcoin profits?
Not necessarily. The index shows relative performance trends but doesn’t eliminate risk. Altcoins can still decline in absolute terms if BTC drops sharply—even if they fall less than Bitcoin.
How often should I check the index?
Checking weekly is sufficient for most investors. Active traders may monitor it more frequently, especially around major macroeconomic events or crypto-specific catalysts like ETF approvals or protocol upgrades.
Is this indicator suitable for beginners?
Absolutely. Its visual clarity and straightforward logic make it accessible even to those new to crypto trading. Combined with basic risk management, it can guide smarter allocation decisions.
Core Keywords
Altseason Index, Bitcoin vs Altcoins, Crypto Market Cycles, Altcoin Season Indicator, Cryptocurrency Performance Analysis, TradingView Scripts, Market Rotation Signals, 90-Day Crypto Trends
👉 Stay ahead of market rotations with precision tools built for modern crypto traders.