BTC Dominance Zones (For Altseason)

Overview
The "BTC Dominance Zones (For Altseason)" indicator is a visual tool designed to help traders navigate the different phases of the altcoin market cycle by tracking Bitcoin Dominance (BTC.D).

It provides clear, color-coded zones directly on the BTC.D chart, offering an intuitive roadmap for the progression of alt season.

Purpose & Problem Solved
Many traders often miss altcoin rotations or get caught at market tops due to emotional decision-making or a lack of a clear framework. This indicator aims to solve that problem by providing an objective, historically informed guide based on Bitcoin Dominance, helping users to prepare before the market makes its decisive moves. It distils complex market dynamics into easily digestible sections.


Key Features & Components

1. Color-Coded Horizontal Zones: The indicator draws fixed horizontal bands on the BTC.D chart, each representing a distinct phase of the altcoin market cycle.
   
2. Descriptive Labels: Each zone is clearly labeled with its strategic meaning (e.g., "Alts are dead," "Danger Zone") and the corresponding BTC.D percentage range, positioned to the right of the price action for clarity.
   
3. Consistent Aesthetics: All text within the labels is rendered in white for optimal visibility across the colored zones.
   
4. Symbol Restriction: The indicator includes an automatic check to ensure it only draws its visuals when applied specifically to the CRYPTOCAP:BTC.D chart. If applied to another chart, it displays a helpful message and remains invisible to prevent confusion.
   

Methodology & Interpretation
The indicator's methodology is based on the historical behavior of Bitcoin Dominance during various market cycles, particularly the 2021 bull run. Each zone provides a specific interpretation for altcoin strategy:

• Grey Zone (BTC.D 60-70%+): "Alts Are Dead"
  Interpretation: When Bitcoin Dominance is in this grey zone (typically above 60%), Bitcoin is king, and capital remains concentrated in BTC. This indicates that alt season is largely inactive or "dead". This phase is generally not conducive for aggressive altcoin trading.
• Blue Zone (BTC.D 55-60%): "Alt Season Loading"
  Interpretation: As BTC.D drops into this blue zone (below 60%), it signals that the market is "heating up" for altcoins. This is the time to start planning and executing your initial positions in high-conviction large-cap and strong narrative plays, as capital begins to look for more risk.
• Green Zone (BTC.D 50-55%): "Alt Season Underway"
  Interpretation: Entering this green zone (below 55%) signifies that "real momentum" is building, and alt season is genuinely "underway". Money is actively flowing from Ethereum into large and mid-cap altcoins. If you've positioned correctly, your portfolio should be showing strong gains in this phase.
• Orange Zone (BTC.D 45-50%): "Alt Season Ending"
  Interpretation: As BTC.D dips into this orange zone (below 50%), it suggests that altcoin dominance is reaching its peak, indicating the "ending" phase of alt season. While euphoria might be high, this is a critical warning zone to prepare for profit-taking, as it's a phase of "peak risk".
• Red Zone (BTC.D Below 45%): "Danger Zone - Alts Overheated"
  Interpretation: This red zone (below 45%) is the most critical "DANGER ZONE". It historically marks the point of maximum froth and risk, where altcoins are overheated. This is the decisive signal to aggressively take profits, de-risk, and exit positions to preserve your capital before a potential sharp correction. Historically, dominance has gone as low as 39-40% in this phase.

How to Use
Open TradingView and search for the BTC.D symbol to load the Bitcoin Dominance chart and view the indicator.

Double click the indicator to access settings.

Inputs/Settings
The indicator's zone boundaries are set to historically relevant levels for consistency with the Alt Season Blueprint strategy. However, the colors of each zone are fully customizable through the indicator's settings, allowing users to personalize the visual appearance to their preference. You can access these color options in the indicator's "Settings" menu once it's added to your chart.

Disclaimer
This indicator is provided for informational and educational purposes only. It is not financial advice. Trading cryptocurrencies involves substantial risk of loss and is not suitable for every investor. Past performance is not indicative of future results. Always conduct your own research and consult with a qualified financial professional before making any investment decisions.

About the Author
This indicator was developed by Nick from Lab of Crypto.

Release Notes
v1.0 (June 2025): Initial release featuring color-coded horizontal BTC.D zones with descriptive labels, based on Alt Season Blueprint strategy. Includes symbol restriction for correct chart application and consistent white text.