Understanding when the crypto market transitions into an altseason—a period where alternative cryptocurrencies outperform Bitcoin—is crucial for traders aiming to maximize returns. While Bitcoin often leads broader market cycles, the real explosive gains typically come from well-timed altcoin rotations. This article explores powerful TradingView indicators that help identify early signs of altseason, interpret dominance trends, and implement actionable trading strategies.
What Is Altseason?
Altseason refers to a market phase where capital flows from Bitcoin into alternative cryptocurrencies (altcoins), causing widespread price appreciation across the altcoin ecosystem. During this time, many altcoins significantly outperform BTC in both USD and BTC-denominated terms.
Identifying altseason early allows traders to:
- Rotate capital from BTC into high-potential altcoins.
- Capture outsized gains before momentum peaks.
- Avoid late entries during speculative mania.
But how do you spot it before it’s obvious?
Key Indicators to Detect Altseason
ZenAlgo Dominator: Multi-Ticker Market Context
The ZenAlgo Dominator provides a comprehensive view of market momentum by analyzing short-term price behavior across up to nine user-defined tickers, compared with Bitcoin (BTC), Ethereum (ETH), and overall crypto dominance.
How It Works
- Intraday Performance Tracking: Compares current prices to daily opens, showing which assets are gaining strength.
- Dominance Analysis: Aggregates BTC, USDT, and USDC dominance to assess risk-on vs. risk-off sentiment.
- Directional Bias Detection: Uses EMA deviation and recent candle patterns to classify trends (e.g., three consecutive higher closes = bullish).
Market Regime Classification:
- ✅ Altseason: BTC dominance falling, ETH dominance rising, ETH outperforming BTC.
- ❌ BTC Season: BTC dominance rising, ETH dominance falling, BTC leading.
- ⚪ Neutral: No clear trend.
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This indicator excels at revealing whether altcoin moves are isolated or part of a broader rotation—critical for avoiding false breakouts.
TOTAL3/BTC Ratio: Measuring Altcoin Strength vs. Bitcoin
The TOTAL3/BTC script calculates the market cap ratio of all non-BTC, non-ETH cryptocurrencies (TOTAL3) against Bitcoin’s market cap.
Key Features
Visual Trend Indicator: Plots the ratio as a blue line with dynamic color coding:
- Lime = uptrend
- Red = downtrend
- Aqua = neutral
- Reference Levels: Horizontal lines at 0.3 and 0.8 mark potential support/resistance zones.
- Multi-Timeframe Smoothing: Applies complex moving average logic to filter noise and confirm trend direction.
When the TOTAL3/BTC ratio rises, it indicates altcoins (excluding ETH) are gaining value relative to Bitcoin—often a precursor to altseason.
Traders can pair this with volume analysis or on-chain data for stronger confirmation.
Degen Dominator: Oscillator-Based Capital Flow Analysis
Developed by mutantdog, the Degen Dominator transforms traditional dominance percentages into oscillators centered around zero.
Why It’s Unique
Instead of viewing dominance as static percentages, this tool shows changes in dominance over time:
- Above zero → increasing dominance (capital inflow)
- Below zero → decreasing dominance (capital outflow)
Default Oscillators Include:
- Bitcoin (Orange):
CRYPTOCAP:BTC.D - Ethereum (Blue):
CRYPTOCAP:ETH.D - Stablecoins (Red): USDT + USDC dominance
- Altcoins (Green): Residual (100% minus above)
Additional optional layers include DeFi dominance and custom symbol matching.
Multiple oscillator types are available:
- EMA/SMA Centre
- RSI/CMO variants
- Hard/Soft Floor models
This setup allows side-by-side comparison of capital flows, making it easy to see if money is rotating out of BTC and into alts—even before price reflects it.
Other Alts Compensated Capitalization: Filtering Out BTC Noise
Created by Peregringlk, this indicator isolates the true USD value growth of smaller altcoins by removing the influence of BTC price swings.
The Core Idea
Even if altcoin market cap rises in USD, it may not reflect real demand if the increase is purely due to BTC's rise. This tool measures performance in BTC terms and only shows gains when both:
- Altcoin market cap increases in USD
- Altcoin/BTC ratio increases
It excludes large-cap alts like ETH to focus on broader market participation.
Interpretation
A sustained rise (>10%) in this indicator suggests:
- Real buying pressure in BTC-alt markets
- Early accumulation phase before full altseason
- Possible leading signal for BTC’s next move
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Strategic Framework for Trading Altseason
Step 1: Confirm Market Regime
Use ZenAlgo Dominator or Degen Dominator to determine if conditions favor:
- BTC dominance (risk-off)
- ETH/alt leadership (risk-on)
Look for confluence: falling BTC dominance + rising ETH dominance + positive TOTAL3/BTC slope.
Step 2: Identify Leaders
Apply intraday change filters to spot early movers—altcoins showing strong % gains from daily open while broader market confirms risk-on bias.
Step 3: Time Entry with Momentum Filters
Wait for pullbacks in strong alts after initial breakout. Use EMA clusters (like those in Crypto Indicators #u9tus) for dynamic support/resistance levels.
Step 4: Monitor Exit Signals
Watch for:
- TOTAL3/BTC ratio stalling at resistance
- Degen Dominator showing overbought readings
- Reversal in alt/BTC capitalization growth
Frequently Asked Questions (FAQ)
What is the best timeframe to use these indicators?
Most perform best on 15-minute to 4-hour charts, capturing short-term momentum shifts. For regime confirmation, review daily charts.
Can these tools predict altseason accurately?
They don’t predict but detect early signals based on capital flow and relative strength. No tool is perfect—always combine with risk management.
Why exclude Ethereum from some analyses?
ETH often behaves like a hybrid asset (part altcoin, part blue-chip). Separating it clarifies whether rallies are broad-based or driven by a single large cap.
How do I avoid fakeouts during sideways markets?
Use multiple indicators together. For example, only act when TOTAL3/BTC is rising, BTC dominance is falling, and individual alts show strong intraday momentum.
Should I trade every altcoin showing strength?
No. Focus on projects with strong fundamentals, active development, and growing exchange listings. Momentum without substance often reverses sharply.
Is altseason guaranteed after BTC peaks?
Not always. Sometimes capital flows into stablecoins instead. True altseason requires sustained risk appetite across decentralized finance, NFTs, gaming, and emerging sectors.
Final Thoughts: Stay Objective, Not Emotional
Altseasons generate excitement—and FOMO. But successful trading comes from objective analysis, not hype.
By leveraging tools like ZenAlgo Dominator, TOTAL3/BTC, and Degen Dominator, you gain visibility into hidden capital flows and market structure shifts long before mainstream narratives catch up.
Whether you're scanning for early rotation signs or fine-tuning exit points, integrating these indicators into your workflow enhances edge and precision.
👉 Access powerful trading tools and execute your strategy with confidence.
With disciplined use of data-driven insights, you position yourself not just to survive market cycles—but to thrive within them.