Thank you for attending the lecture in Steemit-Crypto-Academy Season 4 & doing the homework task-3

Here you can notice that we are not calculating the value of 30 Coins which has not been moved yet so this is how we can get to know the Realized Market Cap.

If you are calculating the realized cap of the entire history of the coin/asset, then please bear in mind that in UTXO structures, all the assets will remain as UTXO, so the reference price on that particular date UTXO was created should be taken into consideration while calculating the Realized cap.

In the chart you can clearly see that the Realized Market Cap is growing in the Bull un this is because the Bitcoins are being transferred from one place to another place probably to book profits.

That's correct.

In simple words, MVRV is an On-chain Metrics that uses the transparency of Blockchain to identify the Tops and Bottom of the asset

MVRV= Market Cap/Realized Cap

It is a ratio expressed in percentage in general.

In the above chart you may notice that when MVRV is making HH, HL and the value of MVRV is more than 100% the price is moving in an uptrend where if it is creating LL, LH and value is less than 100% then the price is moving in downtrend.

What are those numerical figures of MVRV with respect to HH and HL, always indicate those figures or better create a model in a tabulated format and try to correlate with the price to draw a conclusion.

Also, it helps to identify the potential Tops and bottoms of the asset.

How do you identify the tops and bottoms using MVRV.

• MVRV is higher than 250%, or 300% and formed a lower top- Sell signal
• MVRV lower than 100%, but the general trend is bullish(Price Action)- Buy signal
• MVRV lower than 100% with LH and LL- Extended bear market, accumulation zone(long term)

Under what condition the Realized cap will produce a steep downtrend?

Ans- When the larger mass lose their confidence in the asset or when the buyer/investor will buy at top and sell at bottom(I guess no sane buyer/investor will do that).

Observation/Suggestion/Feedback:-

• The author has demonstrated & analyzed the on-chain metrics wrt price action of BTC both in the short term and long term.
• The author has used Glassnode to analyze the price trend in BTC wrt various on-chain metrics viz Realized Cap, MVRV.
• Practical example using Block Explorer to explain the realized cap would have done justice to this Task.
• Better Quality of Analysis is required to portray a comprehensive understanding of the subject. Always include the numerical data when you correlate with the price.
• One round of proofreading is still required.

Thank you.

Homework Task -3 successfully accomplished
[6.5]