Indicator Overview

The BTC vs. NASDAQ 100 Relative Strength indicator is a high-fidelity momentum metric designed to measure Bitcoin's performance parity against the world’s leading technology index. By calculating the ratio between Bitcoin and the QQQ (Nasdaq 100 Proxy), this indicator filters out general market noise to reveal whether Bitcoin is genuinely outperforming the tech sector or simply rising with the tide of global liquidity.

The metric applies adapted RSI to the BTC/NDX ratio and subsequently smoothed to create a refined strength index. This process isolates periods of structural alpha, where Bitcoin’s growth velocity exceeds that of high-growth equities. The colour-mapped gradient visualises these regimes of relative strength, helping investors identify when Bitcoin is the "lead horse" in a risk-on environment and when it is lagging behind traditional tech.

How To Use

Traders and macro analysts can use this indicator to determine the internal strength of the crypto market relative to traditional high-beta assets.

• Momentum Gradient: The indicator transitions through a deep-to-vibrant green palette. Dark Green segments represent periods where Bitcoin is neutral or underperforming the Nasdaq on a relative basis. Bright Lime Green segments signal aggressive outperformance, typical of the vertical phases of a Bitcoin bull market.

• The 50-Line Equilibrium: The dashed white centerline represents the 50-level pivot. When the Strength Index holds consistently above 50, Bitcoin is in a regime of superior risk-adjusted momentum compared to the Nasdaq. A breakdown below 50 often precedes a period of crypto winter or consolidation, even if the Nasdaq remains stable.

• Visual Divergence: By plotting the Nasdaq price (dashed white line) against Bitcoin (solid white line), users can spot Relative Strength Divergences. If the Nasdaq is making new highs while the Strength Index is falling, it suggests that Bitcoin is losing its leadership status and may be due for a corrective phase.