Usage

Altseason Index Usage

The Altseason Index is designed to clearly identify accumulation and distribution phases in the altcoin market. It utilizes a 0-100 scale, making it simple to interpret and actionable for both short-term and long-term trading strategies.

How it works

The index dynamically calculates scores based on four primary metrics:

1. RSI (Momentum): Evaluates the momentum of the base altcoin market cap.
2. Mayer Multiple (Mean-Reversion): Measures the current price relative to a long-term moving average to identify historical extensions.
3. Altcoins vs BTC: Compares the performance of the altcoin market cap (TOTAL3) against Bitcoin to gauge capital rotation.
4. Altcoins vs NVDA: Compares the altcoin market cap against traditional tech (NASDAQ:NVDA) to measure broader risk-on appetite.

By weighting and merging these four data points into a single oscillator, the index filters out short-term volatility to deliver a clear, actionable read on current market conditions.

Interpreting the Index Zones

• Accumulation (Under 30): When the Altseason Index drops below 30, altcoins are historically undervalued relative to Bitcoin and traditional tech stocks. This area is considered a strong zone for dollar-cost averaging (DCA) into fundamentally strong altcoins.
• Deep Opportunity (Under 20): Values strictly under 20 represent "Deep Opportunity" accumulation zones where downside risk is heavily compressed. When the index enters this level, the indicator highlights the chart background to signal prime buying conditions.
• Equilibrium (50 Level): The 50 line represents equilibrium between altcoins and Bitcoin. Sustained momentum crossing and holding above 50 generally confirms an active "Altseason" trend where altcoins outperform.
• Distribution & Extreme Risk (Over 80): When the index crosses above 80, the market is displaying "Extreme Risk." This signals that altcoins are overextended and a capital rotation back to Bitcoin or stablecoins is highly probable. It is often a signal to take profits or rebalance portfolios.