Storing your image data in your database is really not a good idea. Your database will become heavy with just a few images.
Usually the logic is to upload the image with PHP, then record only the filename in the database. PHP can generate thumbnails on the fly too, what you cannot do if you store the image in a BLOB field.
This said, here's the code, in case there would be a very unique special reason you still want to save BLOB data:
$fp = fopen($_FILES['image']['tmp_name'], 'r');
$filename = $_FILES['image']['name'];
$content = fread($fp, $_FILES['image']['tmp_name']);
$query = "INSERT INTO image (id, image) VALUES ('$filename', '$content')";