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

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An analysis has emerged suggesting that the altcoin market is showing its strongest bullish signal in years. It is evaluated that the long-term selling pressure 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 been consolidating near long-term bullish support levels for several months, absorbing selling pressure, and that momentum has recently begun to shift upwards.

Chadwick explained that such a structure historically appears at the beginning of an altcoin season. He cited the 2020-2021 cycle as the clearest comparative example, stating that after similar signals appeared 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. He argued that the flow of funds from safe-haven assets to high-risk, high-volatility assets has already begun.

Other market analysts also noted similar trends. Michaël van de Poppe previously analyzed that altcoins are following Bitcoin (BTC)'s trend by about 1-3 weeks, and if the pattern continues, a 100-300% rise 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. He also pointed out that the market still has a long way to go and liquidity is limited.

While optimism is growing, market burdens are also clear. Darkfost explained that at least 51 million altcoins are currently circulating in the cryptocurrency market, with 46% on Solana (SOL), 36% on Base, and 10% on BNB Smart Chain. This significant increase in altcoin supply means that liquidity could be dispersed, becoming an obstacle to 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 an earlier post, Chadwick suggested that if the Digital Asset Market Clarity Act of 2025 clarifies cryptocurrency market structure rules, it could facilitate institutional participation. However, multiple amendments have been proposed for the bill ahead of its 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 does not take responsibility for investment losses based on it. The content should be interpreted for informational purposes only.*