The concept of altseason—a market phase where alternative cryptocurrencies (altcoins) outperform Bitcoin (BTC)—is a pivotal moment for crypto traders seeking amplified returns. Identifying the onset of altseason early can mean the difference between riding a massive wave of momentum or missing out entirely. Fortunately, advanced TradingView Pine Script® indicators provide powerful tools to detect shifts in market dynamics, assess relative strength, and evaluate dominance trends across the crypto ecosystem.
This guide dives into key indicators that help traders spot altseason signals, interpret market regimes, and make data-driven decisions using technical analysis grounded in dominance, momentum, and cross-asset comparisons.
Understanding Market Regimes: BTC Season vs. Altseason
Markets cycle between phases dominated by Bitcoin and those led by altcoins. Recognizing these regimes is essential:
- BTC Season: Characterized by rising Bitcoin dominance, increasing BTC price strength, and outflows from altcoins.
- Altseason: Marked by declining BTC dominance, rising Ethereum (ETH) dominance, and broad-based gains across smaller-cap cryptos.
👉 Discover real-time signals that help identify the shift from BTC dominance to altcoin momentum.
The transition isn’t always obvious from price alone—this is where specialized indicators come in.
ZenAlgo Dominator: Multi-Ticker Momentum Analysis
The ZenAlgo Dominator offers a structured overview of market momentum by analyzing short-term price behavior across up to nine user-defined assets alongside BTC and ETH.
Key Features
- Intraday Performance Tracking: Compares current prices to daily opens, calculating percentage changes to reveal which assets are showing strength or weakness within the session.
- Dominance Aggregation: Combines BTC, USDT, and USDC dominance using CRYPTOCAP indices as a proxy for market sentiment. A rising combined dominance suggests risk-off behavior; a decline may signal risk-on rotation into altcoins.
- Directional Bias Detection: Uses an Exponential Moving Average (EMA) with a default 4-bar lookback to determine trend direction. Confirms trends via consecutive higher/lower closes, filtering out sideways noise.
Market Status Logic
A custom function evaluates:
- BTC and ETH dominance trends
- Relative performance between BTC and ETH
Based on this:
- Altseason is flagged when BTC dominance falls, ETH dominance rises, and ETH outperforms BTC.
- BTC Season occurs when BTC dominance increases, ETH dominance drops, and BTC leads.
- Otherwise, the market is classified as Neutral.
Ticker Classification System
Each asset is labeled based on its momentum and macro alignment:
- Full Bull: Uptrend + declining dominance or rising BTC
- Bullish: Uptrend without broader confirmation
- Neutral: No clear trend
- Bearish: Downtrend without confirmation
- Full Bear: Downtrend + rising dominance or falling BTC
Color-coded outputs enhance readability, enabling rapid decision-making on lower to mid timeframes (15m–4h).
TOTAL3/BTC Ratio: Measuring Altcoin Strength Relative to Bitcoin
Another effective method involves analyzing the market cap ratio of non-BTC/ETH altcoins to Bitcoin, known as TOTAL3/BTC.
How It Works
- Data Inputs: Fetches TOTAL3 (all cryptos minus BTC and ETH) and BTC market cap data.
- Ratio Calculation: Plots the TOTAL3/BTC ratio as a blue line—rising values indicate altcoins gaining strength against BTC.
- Trend Filtering: Applies two SMAs (20 & 50 periods), though not plotted directly.
Dynamic Color Coding: A multi-timeframe moving average changes color based on direction:
- Lime = Uptrend
- Red = Downtrend
- Aqua = Sideways/no clear trend
Horizontal reference lines at 0.3 and 0.8 serve as historical equilibrium zones—breakouts beyond these levels can signal strong regime shifts.
👉 Use dynamic trend analysis to visualize when altcoins begin outperforming Bitcoin.
This indicator helps traders avoid emotional bias by focusing on relative value rather than isolated price movements.
Degen Dominator: Oscillator-Based Capital Flow Analysis
Developed as a companion tool to traditional dominance charts, the Degen Dominator transforms standard percentage-based dominance metrics into oscillators centered around zero.
Core Concept
Instead of viewing BTC.D at 54%, for example, it plots how much BTC dominance has deviated from its average over a set period. This enables side-by-side comparison of multiple dominance indexes in one pane.
Included Indexes (Default)
- Bitcoin (Orange):
CRYPTOCAP:BTC.D - Ethereum (Blue):
CRYPTOCAP:ETH.D - Stablecoins (Red): USDT + USDC dominance
- Altcoins (Green): Residual = 100% – (BTC + ETH + Stablecoins)
Oscillator Presets
Several calculation methods are available:
- EMA/SMA/Median/Midrange Centre: Deviation from moving average
- Simple/Weighted/Running Delta: Momentum-style change over time
- RSI & CMO: Centered at zero for directional insight
- Hard/Soft Floor: Measures distance from recent lows (Soft includes smoothing for early breakout detection)
When an oscillator rises above zero, capital is likely flowing into that segment; below zero indicates outflows.
Alerts are built-in for zero-line crossovers—ideal for automated monitoring.
Other Alts Compensated Capitalization: Filtering Out BTC Noise
One of the most insightful tools is the Other Alts Compensated Capitalization indicator, designed to isolate true altcoin strength independent of Bitcoin’s price swings.
The Problem with Raw Data
If BTC surges 20% and altcoins rise 30%, it's tempting to assume strong demand—but much of that gain could simply be BTC-driven valuation inflation.
This script removes BTC's influence by measuring altcoin performance in BTC terms, not just USD.
Calculation Logic
Let:
x= BTC price change ratey= Altcoin market cap change in BTC termsx * y= Actual USD capitalization change
The indicator plots cumulative growth only when both:
- USD capitalization is increasing (
x * y > 1) - Altcoins are gaining value in BTC markets (
y > 1)
This ensures the chart grows only during genuine altseason conditions—when both BTC and USD metrics confirm buying pressure.
Additionally, large-cap alts like ETH are excluded to focus on broader market participation. With ETH representing over 20% of total altcap, its movements could skew results even if smaller alts remain stagnant.
👉 Analyze true altcoin momentum beyond Bitcoin’s shadow.
Four EMAs (21, 50, 100, 150) are included for trend confirmation.
Practical Strategies for Using These Indicators
1. Combine Macro Regime Filters with Ticker-Level Signals
Use ZenAlgo Dominator or Degen Dominator to determine overall market state before selecting trades. Enter altcoin positions only when:
- Market state = Altseason
- Ticker status = Full Bull
- TOTAL3/BTC ratio is trending upward
2. Confirm Breakouts with Multiple Timeframes
Apply compensated capitalization analysis on daily charts while using intraday momentum indicators for entry timing.
3. Watch for Divergences
If altcoin prices rise in USD but fall in BTC terms, it may reflect BTC’s weakness rather than real demand—avoid chasing such rallies.
Frequently Asked Questions
Q: What is the best indicator to predict altseason?
A: No single indicator guarantees timing accuracy, but combining the Other Alts Compensated Capitalization with TOTAL3/BTC ratio trends provides strong early signals when both show sustained upward momentum.
Q: How do I know if altseason has started?
A: Look for converging evidence: declining BTC dominance, rising ETH dominance, positive momentum across multiple altcoins relative to BTC, and increasing participation from small-cap projects.
Q: Can I automate alerts for altseason conditions?
A: Yes—tools like Degen Dominator include built-in alerts for zero-line crossovers. You can also customize Pine Script logic to trigger notifications when specific thresholds are met.
Q: Why exclude large-cap alts like Ethereum?
A: Because they dominate total altcoin market cap. Their price moves can create false impressions of broad strength even when most alts are flat or down.
Q: Should I sell everything during BTC season?
A: Not necessarily. Rotate capital strategically—reduce exposure to weak alts during BTC dominance phases but hold high-conviction projects with strong fundamentals.
Q: Are these indicators suitable for beginners?
A: While they require some understanding of dominance and relative strength concepts, all are user-friendly with intuitive visual outputs. Start with preset configurations before customizing.
Final Thoughts
Identifying altseason requires more than watching price charts—it demands a layered approach combining dominance analysis, relative strength metrics, and macro trend evaluation. The Pine Script® tools discussed here offer actionable insights into capital flows, market sentiment, and emerging opportunities across the crypto landscape.
By integrating these indicators into your trading workflow, you position yourself to act early—not react late—when the next wave of altcoin momentum begins.
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