This is a quick demonstration of Divergences that can appear in the price action.
Divergences are termed as the condition when the price action of the asset becomes asymmetrical to the RSI of the price action.
In simple words, RSI shows the Relative Strength of the asset and if the RSI 'the strength' is not aligning with the price action, then we should be cautious because it might hint that the current trend is getting weaker and can flip in opposite direction in near future.
Currently, we're having Bearish Divergence on Bitcoin Price Action and due to this, you see a correction.
Very good. I just want to point out that if you look back at March 25 2021, we could very well be in a similar spot right now. Meaning, that even though the RSI is trending lower, there is still room to print off another ATH before going into a bear market. Who knows, anything could happen really at this point.