Bearish Logic Two: RSI Divergence


┈➤Simplest Calculation of RSI
RSI is an index that calculates the relative strength of price increases.
RSI is originally a pretty simple calculation, but I don't know why it’s made quite complicated, seeming to have a major issue.
It’s basically summing the gains over the recent N days when prices go up, and summing the losses when prices go down.
RSI = Total Gains / ((Total Gains + Total Losses)) * 100
For example, day 1 gains 1, day 2 loses 2, day 3 gains 3, day 4 loses 4, day 5 gains 5, day 6 loses 6.
RSI6 = (1+3+5) / (1+3+5+2+4+6) * 100
┈➤Significance of RSI
RSI6 = 75
This means that in the past 6 days, the buying strength accounts for 75%, and the selling strength accounts for 25%.
┈➤Overbought and Oversold
It is generally believed that when RSI exceeds 75, it is overbought, indicating strong buying momentum.
When RSI drops below 25, it is oversold, indicating strong selling momentum.
┈➤RSI Divergence
Besides the overbought and oversold signals, RSI can also be compared with price trends.
From April 17 to April 22, it’s clear that BTC was rising.
However, both RSI6 and RSI12 did not make higher highs, while RSI24 showed an upward trend. At the 6-day and 12-day levels, RSI diverged.
This indicates that the relative strength of the upward move from April 12 to April 17 was stronger than from April 17 to April 22.
The upward relative strength from April 6 to April 17 over 12 days was stronger than from April 11 to April 22 over 12 days.
This suggests that, relatively, the buying strength is weakening, and the selling strength is strengthening.
Compared to RSI24, its effect is weaker. Similar situations occurred on December 9, 2025, and January 14, 2026. Both RSI6 diverged, RSI24 was trending upward, but BTC prices were at stage tops.
Of course, this doesn’t mean prices will immediately fall; sometimes, emotional momentum can continue upward. So, the BTC spot bought at 63 has been sold, and I am still observing for shorting opportunities. $BTC
BTC0,25%
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