Altseason Index (Top 10) – A Comprehensive Guide

Overview

The Altseason Index (Top 10) is a powerful tool designed to identify whether the cryptocurrency market is in an altseason (where altcoins outperform Bitcoin) or a Bitcoin season. This indicator analyzes the 90-day performance of 9 major altcoins (ETH, BNB, ADA, XRP, SOL, DOT, AVAX, SHIB, LINK) against Bitcoin, drawing inspiration from the Blockchain Center’s Altcoin Season Index.

How the Altseason Index Works

Key Calculations:

1. 90-Day Price Change: Tracks BTC and the 9 altcoins.
2. Outperformance Count: Measures how many altcoins beat BTC’s performance.
3. Index Formula:
   [
   \text{Index} = \left(\frac{\text{Number of Outperforming Altcoins}}{9}\right) \times 100
   ]

4. Interpretation:

   • >75%: Altseason (green zone) – Favorable for altcoin investments.
   • <25%: Bitcoin season (red zone) – Focus on BTC.
   • 25–75%: Neutral phase.

Visualization Features:

• Blue Line: Index value (0–100).

• Thresholds:

  • Green line at 75 (altseason trigger).
  • Red line at 25 (Bitcoin season trigger).
• Background Colors: Green/red shading highlights active seasons.

Practical Usage

Steps to Implement:

1. Add the indicator to your trading chart.
2. Match Tickers: Ensure alignment with your exchange (e.g., BTCUSD or BINANCE:BTCUSDT).

3. Decision Framework:

   • Index >75: Consider diversifying into altcoins.
   • Index <25: Prioritize Bitcoin holdings.

Best Practices:

• Timeframe: Optimized for daily charts but adaptable.
• Limitations: Restricted to 9 altcoins due to TradingView’s request.security() constraints.

Core Keywords

1. Altseason Index
2. Cryptocurrency Market Trends
3. Bitcoin vs Altcoins
4. TradingView Indicators
5. Investment Strategies

FAQ Section

1. What defines an altseason?

An altseason occurs when altcoins collectively outperform Bitcoin over a sustained period, typically signaled by the Altseason Index exceeding 75%.

2. Why use only 9 altcoins in the index?

Due to technical limits in TradingView’s scripting, the indicator focuses on high-market-cap altcoins for reliable analysis.

3. Can this indicator predict market cycles?

While it identifies trends, it’s not a predictive tool. Always combine it with fundamental analysis and risk management.

4. How reliable is the 90-day timeframe?

The 90-day window balances short-term noise and long-term trends, but traders may adjust based on strategy.

5. Where can I access this indicator?

👉 Explore the Altseason Index on TradingView

Final Notes

The Altseason Index offers a data-driven approach to market cycles. For optimal results, integrate it with broader technical and fundamental insights.

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Always verify exchange-specific tickers and review disclaimers before trading.