This comprehensive guide explores the True Total Altcoin Market Cap Indicator, a powerful tool for analyzing pure altcoin market movements by excluding Bitcoin, Ethereum, and major stablecoins from market cap calculations.
How the Indicator Works
The indicator calculates the real altcoin market capitalization using a specialized formula:
- Takes the total cryptocurrency market cap (CRYPTOCAP:TOTAL data)
Deducts:
- Bitcoin (BTC) dominance
- Ethereum (ETH) influence
- Major stablecoins (USDT, USDC, BUSD, DAI)
Visualizes results through custom-colored candlesticks:
- Green (#26a79b): Bullish market conditions
- Red (#ef5351): Bearish market trends
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Key Features and Benefits
- Precision filtering: Removes noise from BTC/ETH price movements
- Non-repainting analysis: Uses standard OHLC data for reliable signals
- Clear visual indicators: Color-coded candles simplify trend recognition
- Pure altcoin focus: Helps traders identify true altcoin market strength
- Open-source accessibility: Transparent code for community verification
Practical Applications for Traders
Market Trend Analysis
The indicator helps identify:
- Emerging altcoin trends
- Market cycle transitions
- Relative strength against BTC/ETH
Portfolio Strategy
- Determine optimal altcoin allocation
- Time entry/exit points more effectively
- Reduce exposure to BTC/ETH volatility
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Trading Advantages
- Eliminates distortion from stablecoin inflows/outflows
- Provides cleaner technical signals for altcoin pairs
- Complements traditional market cap analysis
- Works across all timeframes (intraday to weekly)
Frequently Asked Questions
Why exclude stablecoins from altcoin market cap?
Stablecoins don't represent speculative crypto assets. Their inclusion distorts true altcoin market liquidity measurements.
How often is the indicator recalculated?
The indicator updates in real-time using the latest market cap data from TradingView's CRYPTOCAP:TOTAL feed.
Can I use this for long-term investment decisions?
While helpful for spotting trends, always combine with fundamental analysis and risk management strategies.
Does this work for all altcoins equally?
Yes, the calculation includes all cryptocurrencies except BTC, ETH, and the specified stablecoins.
How does this differ from "Altcoin Market Cap" metrics?
Most public metrics still include stablecoins. This indicator provides a purer measure of speculative crypto assets.
Conclusion
This innovative indicator offers traders a more accurate representation of altcoin market dynamics by isolating speculative crypto assets from the influence of Bitcoin, Ethereum, and stablecoins. Its clear visual presentation and reliable calculations make it valuable for both technical traders and market analysts.
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Remember: Past performance doesn't guarantee future results. Always conduct your own research before making trading decisions.