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

and the UTXO balance 70 X was sent back to the sender's wallet as change, the realized Cap of the UTXO is calculated as:

The moment it moves to a new UTXO, the realized cap will change based on the price on that particular time/date. So even if the sender gets back the asset via change address, the Realized cap will be re-evalauted.

you will notice fluctuation in the price of Bitcoin from $44,053.79 - $32,505.66 and this led to a downward move of the Realised cap within the space of 3 months.

If you think that Realized cap has moved downward, then please indicate their numerical values and then corlate with the price development.

whenever the price is in a downward trend, realised cap is affected as it decreases but in uptrend move, the Realised cap starts creating a slope.

NO.

As such Realized cap more or less remains in uptrend, even in a bear run it remains flat or shallow. Because the Hodlers prefer to HODL. Unless there is a loss of confidence, the Realized cap does not follow a downtrend.

The lines drawn in between the charts are tools used in determine the highest point and lowest level of an asset by mere looking at the chart.

Always take the reference from the historical upper and lower ranges.

Further, that's not the correct way to identify a trend using MVRV.

the best way out is to identify the HH and HL in MVRV reading to ascertain the bullish trend. Simillarly, LL and LH to ascertain a bear trend. Also, always take numerical data to analyze it further.

How do I use MVRV to take a position?

First, always refer to the historical upper threshold of 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)

each highest level of the MVRV ratio is quickly preceded by a downtrend which will quickly reverse while the lowest level of MVRV ratio is always preceded by a price upsurge.

Along with the upper threshold you must locate a lower top in MVRV ratio to enter a sell and also keep a eye on historical ranges.

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. It lacks depth of understanding and has serious incosistencies.
• The author has used Santiment 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. Always identify the HH, HL or LH, LL in the chart to ascertain a trend.
• Leave more white space between two paragraphs.
• Pay attention to the corrections as indicated.

Thank you.

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