XMR/XBT is repelled by a flat support for the second timeEarlier this morning at 06:00 EDT, KRAKEN:XMRXBT bounced off of a flat support line at around 0.00702 XBT driven by a quick reduction in the bitcoin/fiat exchange rate. While the exchange rate of bitcoin to fiat is declining presently, the upcoming halving is still around eight days away (as of this current moment). As such, it is reasonable to expect that the current drop in the exchange rate of bitcoin to fiat to be short lived. Historically speaking, the time prior to a block reward halving has (at least in the case of bitcoin) seen a run up in the exchange rate for the month prior to the often-over-reported event.
Typically, when one of the high cap cryptocurrencies undergoes a dramatic upward move, the alternative coin markets decline (as both traders and algorithms around the world sell other assets to rush in and experience the thrill of the FOMO). This is the very force that has driven the exchange rates of assets like XMR down in recent days. All of this having been said, however, these larger trends inevitably take occasional breaks for a natural consolidation period (which is what we are seeing right now with XMR). It is in this moment that traders can snatch up a couple percent from the (short-lived) recovery before bitcoin resumes it's march ever higher toward the next halving.
