Overview
The Altseason Index (Top 10) is a powerful tool designed to detect whether the cryptocurrency market is in an altseason (where altcoins significantly outperform Bitcoin) or a Bitcoin-dominant season. This indicator evaluates the performance of 9 major altcoins—ETH, BNB, ADA, XRP, SOL, DOT, AVAX, SHIB, and LINK—against Bitcoin over a 90-day period. Inspired by the Blockchain Center’s Altcoin Season Index, it provides actionable insights for strategic trading.
How the Altseason Index Works
Key Metrics and Calculation
Price Change Analysis:
- Tracks the 90-day price movement of BTC and the 9 selected altcoins.
- Compares each altcoin’s performance against Bitcoin.
Index Formula:
[
\text{Index} = \left(\frac{\text{Number of Altcoins Outperforming BTC}}{9}\right) \times 100
]- >75%: Signals altseason (highlighted in green).
- <25%: Indicates Bitcoin season (highlighted in red).
- 25–75%: Neutral zone (market transition).
Visual Interpretation
- Blue Line: Represents the index value (0–100).
- Green Threshold (75): Altseason activation level.
- Red Threshold (25): Bitcoin season benchmark.
Background Colors:
- Green fill when index >75% (altseason).
- Red fill when index <25% (BTC season).
Practical Application
Trading Strategies
Altseason (Index >75%):
- Allocate more portfolio weight to high-performing altcoins.
- Monitor momentum indicators for entry/exit points.
Bitcoin Season (Index <25%):
- Prioritize BTC or BTC-paired trades.
- Reduce exposure to volatile altcoins.
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Limitations and Adaptability
- Scope: Limited to 9 altcoins due to TradingView’s
request.security()constraints. - Timeframes: Optimized for daily charts but flexible for intraday or weekly analysis.
Frequently Asked Questions (FAQs)
1. Why only 9 altcoins?
The indicator uses TradingView’s maximum allowed securities per script to maintain computational efficiency while covering top-market-cap assets.
2. Can I customize the altcoin list?
No—this is a pre-configured index. However, you can modify the source code if you’re proficient in Pine Script.
3. How reliable is the 90-day window?
The 90-day period smooths out short-term volatility, providing a balanced view of market trends. Shorter windows may increase noise.
4. Does this work for all exchanges?
Ensure your chart’s tickers match your exchange’s format (e.g., BTCUSD or BINANCE:BTCUSDT).
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Open-Source Script
Developed in the spirit of TradingView’s community, this script is open-source for transparency and collaboration. Reuse is permitted under TradingView’s House Rules.
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Disclaimer
This content is for informational purposes only and does not constitute financial advice. Always conduct independent research before trading. Read the full Terms of Use.