Altseason Index (Top 10): A Comprehensive Indicator Guide

Overview

The Altseason Index (Top 10) is a powerful trading indicator designed to identify whether the cryptocurrency market is in an altseason (altcoins outperforming Bitcoin) or a Bitcoin season. Developed by barsikzloi, this tool analyzes the performance of 9 top altcoins against Bitcoin over a 90-day period, drawing inspiration from the Blockchain Center’s Altcoin Season Index.

How the Altseason Index Works

Key Calculations

1. Price Change Analysis:

   • Tracks the 90-day price movement of BTC and 9 major altcoins (ETH, BNB, ADA, XRP, SOL, DOT, AVAX, SHIB, LINK).
   • Compares each altcoin’s performance to Bitcoin’s.

2. Index Formula:

   • Counts the number of altcoins outperforming BTC.

   • Calculates the index score:

     Index = (Number of Outperforming Altcoins / 9) × 100  

3. Interpretation:

   • ≥75%: Altseason (green zone) — Altcoins dominate.
   • ≤25%: Bitcoin season (red zone) — BTC leads.
   • 25–75%: Neutral phase — Monitor trends closely.

Visualization Features

• Blue Line: Dynamic index value (0–100).

• Threshold Markers:

  • Green line at 75 (altseason entry).
  • Red line at 25 (Bitcoin season entry).

• Background Colors:

  • Green for altseason, red for Bitcoin season.

Practical Usage

Trading Strategies

• Altseason (≥75%):

  • Allocate more capital to high-performing altcoins.
  • Consider diversification across the top 9 assets.

• Bitcoin Season (≤25%):

  • Prioritize BTC investments or stablecoins.

• Neutral Phase:

  • Use additional indicators (e.g., RSI, MACD) for confirmation.

Setup Tips

• Ensure your exchange’s ticker matches (e.g., BTCUSD or BINANCE:BTCUSDT).
• Optimize for daily charts but adaptable to other timeframes.

Limitations

• Asset Coverage: Limited to 9 altcoins due to TradingView’s request.security() constraints.
• Time Sensitivity: Best for medium-term analysis (90-day window).

FAQ

1. What defines an "altseason"?

An altseason occurs when altcoins collectively outperform Bitcoin for a sustained period, typically indicated by the index staying above 75%.

2. Can I customize the altcoins tracked?

No, the indicator uses a fixed set of 9 altcoins due to technical limitations.

3. How reliable is this index for short-term trading?

While optimized for 90-day trends, combine it with shorter-term indicators (e.g., 4-hour RSI) for day trading.

4. Is this indicator free to use?

Yes! The open-source script is available on TradingView. 👉 Explore the script

5. Does it work for all cryptocurrencies?

Only for the specified 9 altcoins and BTC. Exotic or newer coins aren’t included.

6. How often should I check the index?

Monitor weekly for trend shifts, especially near the 25% or 75% thresholds.

Final Notes

The Altseason Index simplifies complex market dynamics into actionable insights. Whether you’re a swing trader or long-term investor, integrating this tool can enhance your strategy. For deeper analysis, pair it with volume indicators or 👉 market sentiment tools.

Always conduct independent research before making investment decisions.