**Bitcoin Nears Bullish Milestone Amid Potential Short-Term Volatility**

Bitcoin (BTC) is on the verge of completing a bullish engulfing pattern on its monthly chart for the first time since January 2023. This pattern, set to finalize in less than 48 hours, could signal a positive long-term trend for Q4 and early 2025.

However, short-term volatility looms. After hitting a local bottom at $52,150 on Sept. 6, BTC surged, breaking past previous lower-highs. Open interest (OI) in Bitcoin futures has soared to $35 billion, matching peaks from earlier in 2024. Despite this, a flat funding rate suggests traders remain uncertain.

Spot traders are aggressively selling into the $66K resistance, raising the likelihood of downside volatility. Technical indicators on the 4-hour chart show a bearish divergence, hinting at a possible correction to $62,300. If the decline continues, BTC might test the $59,500 to $61,000 range, aligning with key Fibonacci levels and moving averages.

A daily close below $60,000 could threaten the current bullish momentum. As always, investors should conduct their own research before making any trading decisions.