CDVI – First Crypto Dominance Volatility Index by Armi Goldman

The Crypto Dominance Volatility Index (CDVI) is the first volatility-based indicator designed specifically to analyze the stability and instability of dominance flows in the crypto market.
Instead of measuring price volatility, CDVI focuses on the volatility of market dominance itself — a structural driver behind capital rotation cycles such as Bitcoin Season, Altseason, accumulation zones, and macro cycle transitions.

CDVI transforms dominance changes into a clear volatility index that highlights compression, expansion, and regime shifts.



How it works

CDVI calculates the absolute or percentage-based realized volatility of your chosen dominance benchmark (BTC.D, TOTAL.D, or any dominance index available on TradingView).
The indicator then:
1. Smooths the volatility curve using adjustable parameters
2. Builds a long-term mean to identify regime structure
3. Computes percentile zones over a rolling lookback window
4. Highlights high-risk and low-risk dominance conditions using color-coded backgrounds

This creates a clean, noise-reduced volatility representation of the dominance market.



Why it looks like this

The CDVI curve is intentionally smooth and cyclical because dominance volatility behaves differently from price volatility:
• Dominance tends to trend slowly, then spike violently during rotation phases
• Periods of prolonged compression often occur before large macro moves
• Volatility bursts cluster during transitions (e.g. BTC → Alts, cycle tops, market-wide repricing)

The percentile zones (90% / 10%) give structural thresholds for extreme conditions.
Background color reveals when dominance volatility enters these extremes, creating visually clear “regime blocks.”



How to interpret CDVI

High CDVI (above the 90th percentile):
• Dominance instability
• Capital rotation phases are active
• Market is repricing sector allocations
• Often appears near Altseason tops or bottoms
• Signals caution for trend traders and opportunity for rotation traders

Low CDVI (below the 10th percentile):
• Compression and calm dominance
• Accumulation and structural balance
• Often precedes major expansions in Bitcoin or Alt markets
• Useful for anticipating cycle transitions before they break out

Long-term mean:
• Helps identify when the market is in a high-vol or low-vol regime
• Crossings around the mean often coincide with early cycle shifts



How to use CDVI in practice

1. Cycle Timing
Use CDVI to detect when the market moves from calm → expansion or expansion → exhaustion.
Low CDVI usually precedes major moves. High CDVI often marks transition turbulence.

2. BTC vs Altcoins Rotation
Combine CDVI with BTC.D / TOTAL2 / TOTAL3 to detect rotation windows.
High CDVI = dominance is unstable → rotations happen.
Low CDVI = dominance is stable → trending environment.

3. Risk Management
High CDVI suggests elevated structural risk (dominance shifting).
Low CDVI supports directional conviction.

4. Confluence with Price
When both price volatility and dominance volatility expand together → macro transition.
When price is volatile but CDVI is flat → noise, not structural change.



Who this indicator is for

• Cycle analysts
• Macro crypto traders
• BTC vs Alts rotation traders
• Portfolio allocators
• Long-term investors looking at structural market phases

CDVI is designed as a clean, structural tool for understanding volatility not of price — but of market power distribution.