Altseason Index (Top 10)

Overview

The Altseason Index (Top 10) is a powerful indicator designed to identify whether the cryptocurrency market is in an altseason (altcoins outperforming Bitcoin) or a Bitcoin season. By analyzing the performance of 9 top altcoins (ETH, BNB, ADA, XRP, SOL, DOT, AVAX, SHIB, LINK) against Bitcoin over a 90-day period, this tool provides actionable insights for traders and investors. Inspired by the Blockchain Center Altcoin Season Index, it simplifies market trends into clear thresholds.

How It Works

Key Calculations

1. 90-Day Price Change: Tracks the percentage change in price for BTC and the 9 altcoins.
2. Outperformance Count: Determines how many altcoins have outperformed BTC during this period.
3. Index Formula:
   [
   \text{Index} = \left(\frac{\text{Number of Outperforming Altcoins}}{9}\right) \times 100
   ]

Threshold Interpretation

• >75% (Green Zone): Signals altseason—favorable for altcoin investments.
• <25% (Red Zone): Indicates Bitcoin season—focus on BTC.
• 25–75% (Neutral): Market is transitional; monitor for shifts.

Visualization Features

• Blue Line: Real-time index value (0–100).
• Green Line (75): Altseason threshold.
• Red Line (25): Bitcoin season threshold.
• Background Colors: Green for altseason, red for Bitcoin season.

Practical Usage

1. Chart Integration: Add the indicator to your TradingView chart.

2. Interpretation:

   • Above 75%: Consider diversifying into altcoins.
   • Below 25%: Prioritize Bitcoin holdings.
3. Exchange Compatibility: Ensure tickers align with your exchange (e.g., BTCUSD or BINANCE:BTCUSDT).

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Limitations & Notes

• Altcoin Coverage: Limited to 9 coins due to TradingView’s request.security() constraints.
• Timeframe Flexibility: Optimized for daily charts but adaptable to other intervals.

FAQ

1. What defines an "altseason"?

An altseason occurs when a majority of altcoins outperform Bitcoin over a sustained period, typically indicated by the index exceeding 75%.

2. How often should I check the index?

For swing traders, weekly checks suffice. Day traders may monitor daily or hourly charts for finer trends.

3. Can I customize the altcoins tracked?

Currently, the script’s 9-coin limit is fixed, but future updates may expand this.

👉 Explore advanced trading tools to complement this indicator.

4. Is the index reliable during high volatility?

While useful, always cross-verify with volume analysis and macroeconomic factors.

5. Why use 90 days for comparisons?

This timeframe balances noise reduction with trend relevance, though testing other periods (e.g., 30/180 days) can provide additional context.

6. How does this differ from the Blockchain Center’s index?

This tool is a simplified, TradingView-optimized version with real-time visualization features.

By integrating the Altseason Index into your strategy, you gain a data-driven edge in navigating crypto market cycles. For deeper insights, combine it with fundamental analysis and risk management frameworks.

👉 Stay ahead with cutting-edge crypto analytics.

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