Bitcoin Weekly Chart Prints Triple RSI Bearish Divergence
This chart shows three drives of bearish divergence between the bitcoin price and its relative strength index (RSI). Since the start of 2024, the price made higher highs as the RSI made lower highs. So even though the price is going up, it’s rising with less force each time, according to the indicator.
RSI recap
The RSI uses a mathematical formula to compare buying and selling pressure. When the RSI goes down, selling pressure is getting stronger, and buyers could be losing steam.
Here, we’re using weekly bitcoin price candles. The RSI formula updates each week to get a number based on bitcoin price movements over the most recent 14 weeks. It divides the average gains of “up weeks” by the average losses of “down weeks”. When the losses of down weeks start to get bigger than the gains of up weeks, the RSI value drops.
It doesn’t guarantee the cycle top is in – but three drives of weekly bearish divergence sure ain’t bullish.
The PDF guide below explains how to use the RSI in your investment strategy:
Key takeaways
- Bitcoin’s price keeps rising, but the RSI is falling – classic bearish divergence.
- This is the third weekly divergence in a row – momentum is fading.
- It doesn’t guarantee a cycle top, but it’s a red flag.
