Indicator Overview

The Altcoin 200-Period MA Heatmap is a long-horizon trend and valuation framework designed to contextualise price action relative to its dominant moving average regime. Rather than focusing solely on absolute price, the indicator measures how extended or compressed an asset is versus its 200-period moving average, a level widely regarded as the market’s primary equilibrium anchor.

The indicator computes a simple moving average using either the 200-day or 200-week interval and continuously evaluates the price-to-average ratio. This ratio is then translated into a colour-scaled heatmap overlaid directly onto price, creating an immediate visual representation of market temperature. Cool colours indicate periods of compression and structural undervaluation, while warm colours highlight extension, excess, and elevated trend risk. The result is a clean, time-continuous regime map that reveals where price sits within its broader cycle rather than reacting to short-term noise.

Dual-Ticker Comparison Logic

The ‘Crypto’ fields allow the indicator to operate in both absolute and relative strength modes, enabling single-asset analysis or ratio-based pair trading.

Single Crypto Analysis: If Crypto 2 is left blank, the indicator defaults to analysing Crypto 1 against US Dollars. This mode is optimised for identifying long-term accumulation zones, trend confirmation above the 200-period average, and late-cycle overheating when price becomes excessively stretched.

Pair Trading and Ratios: When both fields are populated, the indicator automatically constructs a ratio of Crypto 1 divided by Crypto 2, for example ETH/BTC or SOL/SUI. The moving average and heatmap are then calculated on the ratio itself, isolating relative performance. This removes broader market direction and allows users to identify when one asset is structurally outperforming or underperforming its peer across full market cycles.

How To Use

The Altcoin 200-Period MA Heatmap is best used as a regime filter rather than a short-term timing tool. It excels at separating accumulation, trend expansion, and late-cycle risk phases with minimal ambiguity.

• Heatmap Interpretation: Blue and green zones indicate price trading near or below its 200-period average, historically associated with compression, mean reversion, and long-term opportunity. Yellow through red zones reflect increasing extension, where upside becomes asymmetric and downside risk rises.

• Trend Validation: Sustained price action above the 200-day or 200-week average confirms structural bullish conditions. Repeated failure to reclaim the average signals regime weakness rather than a simple pullback.

• Timeframe Selection: Switching between the 200-day and 200-week settings fundamentally changes the lens. The 200-day average captures intermediate cycle structure and trend health, while the 200-week average isolates multi-year market floors, secular trend transitions, and generational accumulation zones.

• Relative Strength Analysis: In ratio mode, warming colours indicate accelerating outperformance, while cooling colours warn that relative momentum is fading. This is particularly effective for rotation strategies within the altcoin market without increasing overall market exposure.