Updated: 21.04.2026
- Glassnode analyst Chris Beamish predicts a short-term “short squeeze” in Bitcoin’s price.
- This is facilitated by the increase in the number of short sellers.
Bitcoin’s price could rise sharply amid growing short-seller activity starting April 21, 2026.
On According to Glassnode analyst Chris Beamish said that in the short term, Bitcoin’s price is likely to experience a “short squeeze,” or a bullish rally that occurs when rising prices force short sellers to buy back their positions.
In addition, Beamish noted that Bitcoin has been in a negative funding rate environment for several weeks now, with short positions dominating the market and long-sellers being rewarded for holding their positions.
BTC futures perpetual funding rate across all exchanges. Source: Glassnode
The increase in short sellers may be related to the asset’s price dynamics over the past three months, which resemble the consolidation from November 2025 to January 2027 that led to the February sell-off. Therefore, if more traders continue to bet on a decline in Bitcoin’s price amid a gradual rebound, the increased number of short-position liquidations could trigger a strong short squeeze.
“I haven’t seen this level of funding in a long time. BTC has been showing persistent negative funding for several weeks, while the price is slowly breaking out of its range. I think a short squeeze is likely,” Beamish said.
The short squeeze-driven surge in BTC prices is fueled by growing spot demand, particularly from institutional investors. For example, iShares Bitcoin BlackRock’s IBIT Trust has seen inflows for nine straight days, accumulating more than $1,6 billion.
This week Strategy Inc (MSTR) purchased BTC worth over $2,5 billion, becoming the largest institutional holder. Meanwhile, large BTC holders (addresses with balances between 100 and 10,000 BTC) added approximately 45,000 coins over the past week.
Therefore, BTC’s price is poised for a short squeeze in the near future, especially if sentiment doesn’t shift sharply. Moreover, in the past, the flagship cryptocurrency has been impacted by geopolitical factors, including the ongoing conflict between the US and Iran, despite strong fundamentals.
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