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What Is RSI Divergence

RSI divergence is a pair of highs, or lows, where the price and its RSI say different things: a higher high in the price with a lower peak in RSI, or a lower low in the price with a higher trough in RSI. This paper shows you bitcoin's two highs of July and August 2025 drawn from real values, the idea as a kite flying higher than before in a weaker wind, the disagreement on the daily chart, the same thing upside down at two lows in March and April, and how to ring and rule the two readings on your platform.

Difficulty
Beginner
Reading time
5 min
Pages
8
Reviewed by
Saman Rahbar

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Two highs that disagree

RSI divergence is a pair of highs, or lows, where the price and its RSI say different things. RSI is a score from 0 to 100 of the last fourteen days' rises against their falls. On 14 July 2025 bitcoin made a high of 123,254 with RSI at 74.9. On 14 August it made a higher high, 124,537, and RSI read 54.1. The price says higher. The score says the fortnight behind the second high had smaller up days than the fortnight behind the first. That disagreement is the divergence, and the word means nothing more than that.

A kite in a weaker wind

The picture is a kite. Last time it flew, the wind was strong and the kite stood lower. This time it is higher than it has ever been, and the windsock beside it hangs slacker than before. The kite is the price and the wind is RSI, the strength of the last fortnight's up days against its down days. A kite can be higher in a weaker wind, because it keeps the height it already had; and when it is, the kite and the windsock disagree. Divergence is that disagreement, noticed.

This paper is locked