Understanding market cycles in the cryptocurrency space is essential for traders aiming to maximize returns. One of the most anticipated phases is altseason—a period when alternative cryptocurrencies (altcoins) significantly outperform Bitcoin (BTC). Identifying the onset of altseason early can provide a strategic edge. This article explores powerful TradingView Pine Script® indicators that help detect altseason through dominance analysis, relative strength, and market momentum, offering actionable insights for traders.
What Is Altseason?
Altseason refers to a market phase where capital rotates from Bitcoin into altcoins, causing a broad rally across the non-BTC crypto ecosystem. While BTC often leads major bull runs, altcoins tend to surge later—sometimes multiplying in value over short periods. Recognizing the shift before it becomes obvious is key to capitalizing on this momentum.
But how do you spot the early signs?
Several on-chain and market-based indicators can signal shifting investor sentiment. Among the most effective are crypto dominance metrics, price ratio analysis, and multi-asset momentum tracking—all of which are available through custom Pine Script® tools on TradingView.
ZenAlgo Dominator: Multi-Ticker Momentum Analysis
The ZenAlgo Dominator is a comprehensive indicator that evaluates short-term price behavior across up to nine user-defined tickers alongside BTC and ETH. It combines intraday performance with broader market context to assess whether altcoins are gaining strength.
Key Features:
- Tracks percentage change from daily open for each asset.
- Compares price direction using a short EMA (default: 4-period).
- Monitors BTC, ETH, and combined stablecoin dominance (BTC + USDT + USDC).
- Classifies market state as Altseason, BTC Season, or Neutral.
How It Identifies Altseason
The script triggers an Altseason signal when:
- BTC dominance is declining,
- ETH dominance is rising,
- ETH is outperforming BTC.
This triad suggests capital is rotating into Ethereum and smaller-cap altcoins—classic risk-on behavior.
Each ticker is also assigned a status:
- Full Bull: Uptrend with declining BTC dominance or rising BTC.
- Bullish: Uptrend without macro confirmation.
- Full Bear: Downtrend with rising dominance or falling BTC.
- Bearish: Downtrend without broader support.
- Neutral: No clear trend.
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This granular classification allows traders to differentiate between isolated pumps and systemic altcoin strength.
TOTAL3/BTC Ratio: Measuring Altcoin Strength Against Bitcoin
Another powerful method to detect altseason is analyzing the TOTAL3/BTC ratio, which measures the combined market cap of all altcoins (excluding BTC and ETH) relative to Bitcoin’s value.
Why Exclude Ethereum?
Ethereum occupies a unique position—neither a pure altcoin nor a reserve asset like BTC. By removing ETH from the calculation, the indicator focuses on true alternative coins, reducing noise from large-cap outliers.
How It Works
- Calculates the TOTAL3/BTC ratio and plots it as a blue line.
Applies a multi-timeframe moving average with dynamic coloring:
- Lime: Uptrend (average rising),
- Red: Downtrend,
- Aqua: Neutral/sideways.
Horizontal reference lines at 0.3 and 0.8 act as psychological thresholds. A breakout above 0.8 may indicate strong altcoin accumulation, while a drop below 0.3 could signal risk-off behavior.
Traders can pair this with volume analysis or orderbook data for higher-confidence entries.
Degen Dominator: Crypto Dominance as Oscillators
The Degen Dominator reimagines dominance metrics as oscillators, allowing side-by-side comparison of multiple sectors within one pane.
Core Components
The default view includes:
- Bitcoin (Orange): CRYPTOCAP:BTC.D
- Ethereum (Blue): CRYPTOCAP:ETH.D
- Stablecoins (Red): USDT + USDC dominance
- Altcoins (Green): Residual (100% minus others)
Each is transformed into an oscillator using methods like:
- EMA Centre
- SMA Centre
- RSI (zero-centered)
- Hard/Soft Floor models
Interpreting the Signals
- Values above zero = increasing dominance (capital inflow).
- Values below zero = decreasing dominance (capital outflow).
- When altcoin oscillator rises while BTC falls → early altseason signal.
Additional features include:
- Preset alerts for zero-line crossovers.
- Optional plots for DeFi, custom symbols, or inter-token comparisons (e.g., DOGE vs SHIB).
This tool excels in visualizing capital flows during volatile periods, making it ideal for swing traders.
Other Alts Compensated Capitalization: Filtering Out BTC Noise
One challenge in measuring altseason is disentangling real demand from BTC price effects. The Other Alts Compensated Capitalization indicator solves this by adjusting altcoin market cap growth for BTC’s price movements.
The Concept
Imagine:
- BTC rises 20%,
- Altcoin market cap rises 30% in USD.
Without adjustment, this looks bullish. But in BTC terms, altcoins only gained 10%. This indicator plots only that excess return, reflecting true demand in BTC-denominated markets.
Mathematical Foundation
Let:
x= BTC price change rate,y= Altcap_BTC change rate,- USD change =
x * y.
The script plots:
yif USD cap is growing (x * y > 1),- Adjusted values otherwise, ensuring the chart reflects both USD and BTC-based performance.
A sustained upward trend in this indicator—especially when BTC is flat or down—may signal early accumulation ahead of a broader altseason.
Practical Strategies for Traders
1. Confirm with Multiple Indicators
Use a combination of:
- TOTAL3/BTC ratio trend,
- Degen Dominator oscillator crossover,
- ZenAlgo market state classification.
Convergence across tools increases signal reliability.
2. Focus on Lower Timeframes
These indicators perform best on 15-minute to 4-hour charts, capturing intraday momentum shifts. Always cross-check with higher-timeframe trends before entering positions.
3. Watch for False Signals
During low-volume or sideways markets, indicators may generate whipsaws. Combine with volume filters or volatility bands to reduce noise.
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Frequently Asked Questions (FAQ)
Q: What is the best indicator for predicting altseason?
A: No single indicator guarantees accuracy, but combining the TOTAL3/BTC ratio, dominance oscillators, and multi-ticker momentum tools provides a robust framework for early detection.
Q: How do I know if altseason has started?
A: Look for: falling BTC dominance, rising ETH and altcoin dominance, strong performance in alt/BTC pairs, and sustained upward movement in compensated capitalization metrics.
Q: Can altseason occur during a bear market?
A: Yes—short-lived altseason rallies can happen even in downtrends, often driven by speculation or sector-specific hype (e.g., memecoins, AI tokens). These are typically less sustainable than bull-market altseasons.
Q: Why exclude Ethereum from some altcoin metrics?
A: Because ETH often moves independently and has institutional backing similar to BTC. Removing it isolates smaller-cap altcoins for cleaner analysis.
Q: Are these indicators free to use?
A: Yes—all discussed scripts are free Pine Script® indicators available on TradingView, though some may require a Pro account for full functionality.
Q: How frequently should I monitor these tools?
A: For active trading, check every 4–6 hours. For long-term positioning, daily review suffices. Real-time alerts enhance responsiveness.
Final Thoughts
Identifying altseason isn’t about chasing hype—it’s about interpreting structural shifts in market dynamics. By leveraging tools like the ZenAlgo Dominator, TOTAL3/BTC ratio, Degen Dominator, and compensated capitalization models, traders gain a data-driven edge.
These indicators transform abstract concepts like “market rotation” into visual, quantifiable signals—enabling smarter decisions in fast-moving crypto markets.
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