Bitcoin price charts point to explosive gains in the long term

Bitcoin and other cryptocurrencies have had a strong start to the week, largely supported by ongoing discussions of economic stimulus in China, the world’s second-largest economy.

Bitcoin (BTC) surged by 4.95%, surpassing the key resistance level of $65,000 for the first time since September 30. The cryptocurrency has gained more than 10% from its recent monthly low and is up 32% from its August bottom, indicating a potential bull market trend.

This price increase in Bitcoin aligns with a broader rally in global stock markets following China’s announcement of new stimulus measures.

In China, the Shanghai Composite Index rose by 2%, and the Shenzhen Index climbed 2.65%. Other Asian and European markets showed similar positive movements, while U.S. stock futures linked to the Nasdaq 100 and Dow Jones continued to climb.

Additionally, Bitcoin’s rise has been fueled by a growing interest from institutional investors, particularly in spot Bitcoin ETFs. According to data from SoSoValue, Bitcoin ETFs saw inflows of $308 million just last week, indicating strong demand from institutional buyers.

BTC monthly chart points to more gains

The monthly chart indicates that Bitcoin could see significant long-term growth, with key technical patterns suggesting potential for future price increases. Since reaching its all-time high of $68,856 in 2021, Bitcoin has been forming a cup-and-handle pattern. This pattern is often seen as a bullish signal and typically precedes a major breakout. After the 2021 peak, Bitcoin retested that level earlier this year and has since formed a rounded bottom, indicating that it could be gearing up for the next leg of its upward move.

The current price consolidation phase is viewed as part of the handle formation of the cup-and-handle pattern, a consolidation period that usually precedes a sharp bullish move.

Moreover, the consolidation is also taking shape within a bullish flag pattern, marked by a strong flagpole (the initial sharp rise) followed by a rectangular, sideways consolidation. These flag patterns often signal a continuation of the upward trend once the price breaks above the top of the flag.

In addition, the chart highlights a hammer candlestick pattern formed in August. This pattern, known for its long lower shadow and large body, is considered a highly bullish reversal signal, further supporting the case for potential price gains.

For a confirmation of sustained bullish momentum, Bitcoin will need to surpass its year-to-date high of $73,800. However, it’s important to note that these patterns, particularly on the monthly chart, can take time to fully develop and materialize, so patience is key for those watching for a breakout.

Bitcoin daily chart catalysts

The daily chart also signals potential for short-term gains, as Bitcoin continues to show strength above key technical levels. It has remained well above both the 50-day and 200-day Exponential Moving Averages (EMAs), suggesting solid momentum. Additionally, Bitcoin has avoided forming a “death cross,” a bearish pattern that typically signals further downside when the 50-day EMA crosses below the 200-day EMA.

Since March, Bitcoin has been developing a broadening wedge pattern, characterized by higher lows and lower highs, indicating increasing volatility and potential for a breakout. Key support levels within this pattern have formed at $73,800, $72,000, and $70,000, with the price consistently bouncing off these levels.

A break above the descending trendline, coupled with a rise above the recent high of $73,800, would confirm a bullish breakout and could trigger further upward movement. With Bitcoin already testing these key levels, the likelihood of reaching a new all-time high this year is growing, as the technical setup continues to point to a bullish continuation.

According to Polymarket, the probability of Bitcoin reaching $63,800 by the end of the year has increased to 62%, marking the highest odds since September 29. This is a significant jump compared to the 32% chance it held earlier this month, reflecting growing confidence among market participants that Bitcoin could surpass this key price level before the year concludes..