I'll try to explain it here, but this would be more suitable in the SMW thread.
Diving status here is the signed byte value of the WRAM address $1409.
1) Accumulate air in the cape:
If you are facing the right, press
Y>, Y, Y>, Y, Y>, Y, Y>, Y until the diving status gets the value -56. If you're facing the left, you can do it without gaining x speed by pressing
Y<>, Y, Y<>, Y, ... .
2) Get near zero horizontal speed:
After the value is -56, press
BY< many times to diminish your speed.
3) Get upward propulsion:
Hold
Y< (or press every other frame) to get a big propulsion upward. You'll notice that the diving status will be reset to zero, and that's what you wanna avoid.
4) Change the signal of your horizontal speed:
By pressing
BY</b>, YB<. This will give you more y speed again.
GIF + steps:
https://imgur.com/a/rsfwz