Crypto Strength Index (CSI)
The Crypto Strength Index measures the overall strength and breadth of the cryptocurrency market, combining market breadth indicators with exponential moving averages to identify market-wide trends and potential turning points.
Understanding the Crypto Strength Index
What is CSI?
The Crypto Strength Index (CSI) is a market breadth indicator that measures the overall health and participation across the cryptocurrency market. Unlike single-asset indicators, CSI analyzes the collective movement of multiple cryptocurrencies to gauge market-wide strength or weakness, providing insights into whether rallies or declines are broadly supported or concentrated in a few assets.
Market Breadth Analysis
The breadth component tracks how many cryptocurrencies are participating in market movements. High breadth values indicate widespread market participation, suggesting healthy, sustainable trends. The 12-period exponential moving average (Breadth EMA) smooths out short-term volatility and helps identify the underlying trend in market participation.
Interpreting the Signals
When both breadth and Breadth EMA are rising together, it signals broad market strength and increasing participation across cryptocurrencies. Conversely, declining breadth suggests weakening market participation and potential trend exhaustion. Divergences between Bitcoin price and CSI can signal important turning points - for example, Bitcoin making new highs while CSI declines may indicate an unsustainable rally with limited market support.
Trading Applications
Traders use CSI to confirm trends and identify potential reversals. Strong breadth readings during uptrends validate bullish momentum, while weakening breadth during rallies can serve as early warning signs. The indicator is particularly valuable for identifying market conditions where Bitcoin moves independently of broader crypto market trends, helping traders assess whether movements are likely to be sustained or represent isolated price action.