Understanding market cycles is crucial for crypto investors aiming to maximize returns. One powerful tool that helps identify these shifting trends is the Altseason Index (Top 10) — a data-driven indicator designed to determine whether the market is in an "altseason" or a "Bitcoin season." By analyzing the relative performance of major altcoins against Bitcoin, this index offers actionable insights for strategic portfolio allocation.
This guide breaks down how the Altseason Index works, how to interpret its signals, and how traders can use it effectively within their technical analysis framework.
What Is the Altseason Index (Top 10)?
The Altseason Index (Top 10) measures whether altcoins are outperforming Bitcoin over a 90-day period. It tracks the price performance of nine leading altcoins:
Ethereum (ETH), Binance Coin (BNB), Cardano (ADA), XRP, Solana (SOL), Polkadot (DOT), Avalanche (AVAX), Shiba Inu (SHIB), and Chainlink (LINK).
By comparing each altcoin’s 90-day return to Bitcoin’s, the index calculates a score from 0 to 100, indicating the strength of altcoin momentum.
👉 Discover how top-performing altcoins are shaping the next market cycle
Core Keywords:
- Altseason Index
- Bitcoin vs altcoins
- Crypto market cycle
- Altcoin performance
- 90-day crypto analysis
- TradingView indicator
- Market trend indicator
- Cryptocurrency investment strategy
How the Altseason Index Works
The calculation process is both transparent and systematic:
- Performance Comparison: For each of the nine altcoins, the indicator computes the 90-day percentage change in price.
- Bitcoin Benchmark: It simultaneously calculates Bitcoin’s 90-day price change.
- Outperformance Count: The system counts how many altcoins have delivered higher returns than Bitcoin.
- Index Score: The final index value is derived using this formula:
(Number of outperforming altcoins / 9) × 100
This produces a normalized score between 0 and 100, making it easy to interpret across different market conditions.
Interpreting the Index Values
The Altseason Index uses clear thresholds to define market phases:
- Above 75 (Green Zone): Strong altseason signal. At least 7 out of 9 altcoins are outperforming BTC — a potential green light for rotating capital into high-conviction altcoins.
- Below 25 (Red Zone): Bitcoin dominance phase. Most altcoins are underperforming — suggests prioritizing BTC accumulation.
- Between 25 and 75 (Neutral Zone): Mixed market sentiment. No strong trend; ideal for research, dollar-cost averaging, or waiting for clearer signals.
These zones are visually represented on charts with color-coded backgrounds, helping traders quickly assess the current market environment.
Visual Design and Chart Integration
When applied to a charting platform like TradingView, the indicator displays:
- A blue line representing the index value (0–100)
- A green horizontal line at 75 marking the altseason threshold
- A red horizontal line at 25 indicating the start of Bitcoin season
- Green shaded areas when the index is above 75
- Red shaded areas when below 25
This visual clarity allows traders to spot regime shifts at a glance, even during fast-moving markets.
Practical Usage Tips
To get the most out of this indicator:
- Apply it on daily timeframes for reliable signals, though it can be adapted to weekly or 4-hour charts depending on trading style.
- Ensure your broker or exchange symbols match those used in the script (e.g.,
BTCUSD,BINANCE:BTCUSDT, etc.). - Combine with other tools like volume analysis, on-chain metrics, or macroeconomic indicators for stronger confirmation.
👉 Explore real-time data to confirm altseason signals before making moves
Limitations and Considerations
While highly informative, the Altseason Index has some constraints:
- It includes only nine altcoins, limited by TradingView’s
request.security()function cap. - The selection focuses on large-cap altcoins, excluding mid- and small-caps that may surge independently.
- It reflects past performance (90-day window), so it's a lagging rather than leading indicator.
Nonetheless, its simplicity and transparency make it one of the most trusted tools among retail and institutional traders alike.
Open-Source Philosophy
True to TradingView’s collaborative spirit, the creator has released this script as open-source. This means any trader can view, audit, and verify its logic — promoting transparency and trust in algorithmic tools.
While free to use, redistribution of the code is subject to community guidelines. This openness encourages innovation while protecting intellectual contributions.
Frequently Asked Questions
What defines an "altseason"?
An altseason occurs when a significant number of altcoins outperform Bitcoin in price growth. It often follows periods of Bitcoin consolidation or major adoption milestones, as capital rotates into higher-risk, higher-reward assets.
Why focus on just nine altcoins?
Due to technical limitations in TradingView’s scripting environment (request.security() limit), only nine assets can be efficiently monitored. These were selected based on market cap, liquidity, and ecosystem significance.
Can this index predict future price movements?
Not directly. The Altseason Index is a lagging indicator, reflecting what has already happened over the past 90 days. However, sustained readings above 75 may signal growing investor appetite for altcoins, which could continue in the short term.
Should I sell Bitcoin when the index goes above 75?
Not necessarily. The index doesn’t advise selling BTC but suggests reallocating new capital toward promising altcoins. Many investors maintain core BTC holdings while adding altcoin exposure during strong altseasons.
How often does altseason occur?
Historically, altseasons tend to emerge 12–18 months after a Bitcoin halving event, once BTC has established a strong base. The exact timing varies based on macro conditions, regulatory news, and technological developments.
Is this indicator suitable for beginners?
Yes — its simple scoring system makes it accessible even to new traders. Combined with basic trend analysis and risk management, it can improve decision-making significantly.
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Final Thoughts
The Altseason Index (Top 10) is more than just a number — it’s a window into investor psychology and capital flow within the crypto ecosystem. By objectively measuring relative performance between Bitcoin and top altcoins, it removes emotion from allocation decisions.
Whether you're building a diversified portfolio or timing entry points for specific projects, integrating this indicator into your analysis can sharpen your edge in volatile markets.
As always, no single tool guarantees success. Use the Altseason Index alongside fundamental research, technical patterns, and sound risk controls to navigate the ever-evolving world of digital assets.