"Another 10,000% Rally Coming?"...Altcoin Market Captures Strongest Bullish Structure Since 2020

▲ Altcoin/AI Generated Image

An analysis suggests that the altcoin market is showing the strongest bullish signals in years. Long-term selling pressure has weakened without breaking key support levels, and some technical structures are similar to those seen just before past major altcoin rallies.

CryptoPotato reported on May 13 (local time), citing an analysis by trader Mark Chadwick, that the altcoin market is showing one of its clearest bullish setups since 2020. Chadwick diagnosed that altcoins have absorbed selling pressure by consolidating for several months near long-term bullish support levels, and recent momentum has begun to shift upwards.

Chadwick explained that this structure has historically appeared at the beginning of altcoin seasons. He cited the 2020-2021 cycle as the clearest comparative example, stating that after similar signals emerged then, many major altcoins rose by 2,000-10,000% within a few months. He also presented the Russell 2000 index reaching an all-time high as a factor supporting the recovery of risk asset preference, arguing that a flow of funds from safe-haven assets to high-risk, high-volatility assets has already begun.

Other market analysts have also noted similar trends. Michaël van de Poppe previously analyzed that altcoins tend to follow Bitcoin (BTC) trends by about 1-3 weeks, and if the pattern continues, a 100-300% increase is possible depending on liquidity and market momentum. On-chain analyst Darkfost stated that the performance of Binance-listed altcoins has recovered to levels not seen since September 2025.

According to Darkfost's data, approximately 21% of Binance-listed altcoins have recovered their 200-day moving average. In February, this ratio was only 2%. However, he drew the line, stating that it is still too early to declare an altcoin season, also pointing out that the market still has a long way to go and liquidity remains limited.

While optimism is growing, clear market headwinds also exist. Darkfost explained that currently, at least 51 million altcoins are circulating in the crypto market, with 46% on Solana (SOL), 36% on Base, and 10% on BNB Smart Chain. This significant increase in altcoin supply means liquidity can be diluted, potentially hindering a major rally. He also mentioned the conflict between the US and Iran and inflation concerns as factors weighing on risk asset sentiment.

The regulatory environment was also cited as a key variable for investors to watch. In a previous post, Chadwick suggested that if the Digital Asset Market Clarity Act of 2025 clarifies cryptocurrency market structure rules, it could facilitate institutional participation. However, the bill faces numerous amendments ahead of review before a vote, and members of the American Bankers Association have submitted over 8,000 letters opposing stablecoin revenue provisions.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*