Bitcoin price charts point to explosive gains in the long term

Bitcoin and other cryptocurrencies started the week well, driven by ongoing stimulus discussions in China, the world’s second largest economy.

Bitcoin (BTC) broke through the key $65,000 resistance point for the first time since September 30. It increased by over 10% from this month’s low and 32% from August’s low, signaling that it is in a bull market. .

Bitcoin’s rise coincided with a strong rise in the global stock market after Chinese authorities announced a series of stimulus measures.

The Shanghai Composite Index increased by 2%, while the Shenzhen index increased by 2.65%. A similar trend occurred in other Asian and European markets. Nasdaq 100 and Dow Jones futures contracts in the USA continued their rise.

Bitcoin’s rally also followed increased institutional interest as investors continued to buy spot Bitcoin ETFs. Data from SoSoValue shows ETFs saw net inflows of $308 million last week.

BTC monthly chart points to further gains

The monthly chart shows that Bitcoin could experience longer-term gains. This shows that BTC price has formed a cup and stem pattern since reaching $68,856 in 2021. It tested this level again this year and formed a rounded bottom.

The recent consolidation has been part of the handle section that usually precedes a major bullish breakout.

This consolidation is also part of the bullish flag formation, which is characterized by a long flagpole followed by a rectangular consolidation.

Additionally, the chart shows that Bitcoin formed a hammer candlestick pattern in August. Characterized by a long lower shadow and a large body, this formation is one of the most bullish signs.

Therefore, further gains will be confirmed if Bitcoin rises above $73,800, the new year-to-date high. However, these patterns may take time to fully emerge, especially on the monthly chart.

Bitcoin price chart | Source: TradingView Bitcoin daily chart catalysts

The daily chart also shows potential short-term gains. Bitcoin remains solidly above the 50-day and 200-day Exponential Moving Averages. He also avoided creating a death cross pattern, which usually signals more downside.

Bitcoin has also been forming an expanding wedge pattern since March, characterized by a series of higher lows and lower highs. In this case, the lows were $73,800, $72,000 and $70,000.

A break above the descending trend line and the all-time high at $73,800 would confirm the bullish trend and likely lead to more gains. The chances of Bitcoin reaching a record high this year are increasing.

Bitcoin price chart | Source: TradingView

According to Polymarket, there is a 62% chance that Bitcoin will rise to $63,800 this year. This is the highest rate since September 29 and is significantly higher than this month’s low of 32%.