Cryptocurrencies continued to consolidate over the last 24 hours, which ‎‎could be seen in part a characteristic of the way that the prices typically move during ‎holidays. However, the global ‎cryptocurrency market underwent a correction ‎of around 40% ‎over the weekend, showing a riotous end to the year.‎

Things could get worse, with prices are still unable to take out ‎the short-term ‎resistance at around $15,000 which has capped ‎the market’s recovery on ‎Saturday.‎

The total value of the 1380 digital currencies tracked by ‎‎ declined from close to $650 billion on ‎Friday to $545 ‎billion on Monday morning.‎ The dip could be seen just a correction after a wild rise for the ‎crypto market ‎‎- the total value of all assets in the space grew ‎by more than 100% in the ‎first three weeks of December ‎alone.‎

Bitcoin touched $20,000 on some exchanges and with the ‎psychological ‎level met the market panicked with traders ‎taking profits off the table. The biggest and best-known cryptocurrency went into free fall on ‎Friday as the price pulled back to $10,700 before staging a 50% rebound.‎ It has then continued to decline in value, now standing at $13,500, ‎ down more than $700 from a high of $14,289 hit earlier today.‎

The rest of the segment is also in a consolidation mode today, with Ethereum ‎‎leading the way higher, already getting close to the $750, but still needs to overcome ‎‎ crucial resistance at $780. Dash, NEO, and NEM all ‎‎broke below major technical levels over the weekend while Ripple, IOTA and Monero are ‎‎looking slightly more resilient amid the broad decline. And Litecoin also down, dropping to roughly half of the all-time high they reached earlier this month.

In the futures market, ‎Cboe’s one-month derivative ‎was earlier halted due to the massive ‎price drop, ‎while futures trading on the CME hit the limit down threshold.‎

Merely Technical Headwinds

Markets moving up so quickly with such uncertainty are ‎naturally going to be ‎subject to huge bouts of volatility. The price has been surging since mid-November and the ‎major ‎technical correction though has only taken us ‎back to the valuations from ‎early December.‎

In addition, the crypto community has previously seen periods of consolidation followed by a bit of ‎correction, ‎and then a move up once again followed by breakout and ‎consolidation. This has been the price pattern over the last few months. ‎However, the massive daily range makes it almost impossible to manage loss risks even if traders don’t get greedy ‎and find out the right levels where ‎they should be entering into or exiting the trades.‎

Other major factor that could have influenced the short-term price trend of ‎‎cryptocurrency is subdued activity of ICOs as investors could be hesitant to make big bets ahead of Christmas and New Year holiday period. Token ‎sales, ‎where startups issue their own digital coins to raise ‎money, have helped fuel ‎the surge in the cryptocurrency ‎market so far this year, with over $3.5 billion ‎raised using ‎ICOs.