CCE Market Analysis and Strategies 5

Question 1

What is the 'Mayer Multiple' and how is it used in Bitcoin market analysis?

Accepted Answer

The ratio of Bitcoin's current price to its 200-day moving average, used to identify overvalued or undervalued conditions

Answer

The Mayer Multiple divides Bitcoin's current price by its 200-day moving average; historically, readings above 2.4 have indicated overvalued conditions while readings below 1.0 have signaled undervaluation.

Question 2

Which Elliott Wave principle component describes the three-wave corrective structure that follows an impulsive five-wave move?

Accepted Answer

ABC corrective pattern

Answer

In Elliott Wave Theory, after a five-wave impulse move, the market corrects in a three-wave ABC pattern, where waves A and C move against the trend and wave B retraces partially.

Question 3

A crypto trader using the 'VWAP anchored to a major low' strategy is primarily trying to:

Accepted Answer

Calculate the average price at which an asset has traded since a significant turning point, to identify fair value and trend direction

Answer

Anchored VWAP calculates the average traded price weighted by volume from a specific starting point (such as a major low), providing a dynamic fair value reference that institutional traders often use.

Question 4

What is 'basis' in cryptocurrency futures markets, and what does a positive basis (futures price above spot) indicate?

Accepted Answer

Basis is the difference between futures and spot prices; positive basis (contango) indicates bullish market expectations with futures trading at a premium

Answer

Basis equals the futures price minus the spot price; a positive basis (contango) reflects the market's expectation of higher future prices and includes carrying costs, indicating bullish sentiment.

Question 5

Which market analysis approach examines blockchain data such as active addresses, transaction counts, and exchange inflows to evaluate crypto asset value?

Accepted Answer

On-chain analysis

Answer

On-chain analysis uses publicly available blockchain data — including active addresses, exchange flows, miner activity, and supply distribution — to derive insights about market participants' behavior and asset valuation.

(CCE) Certified Cryptocurrency Expert Practice Test

(CCE) Certified Cryptocurrency Expert Practice Test

CCE Market Analysis and Strategies 5