Riot Platforms, Inc. (RIOT) is expanding its influence in Bitcoin mining and digital infrastructure. The stock experienced a 7.38% rise on Monday, ending at $23.00, which escalated its three-day increase to over 21%.

Since October, RIOT has been in a consolidation phase within a bullish pattern, marked by a significant weekly topping tail at $23.94. Earlier, the price briefly exceeded the March 28, 2022, high of $23.66, making the zone between $23.66 and $23.94 a key resistance area.

A weekly close above $23.94 could trigger a shift, with a potential rise towards $25.11, and potentially reaching the long-term target of $29.84. Conversely, if sellers uphold the topping tail, the first major support is at $18.84. This level is crucial, as it has been reached before and plays a vital role in the pattern.

Maintaining the range between $18.84 support and $23.94 resistance could result in a future breakout. However, a close below $18.84 would disrupt the bullish consolidation and hinder momentum towards the $29.84 target.

With RIOT’s stock gaining over 21% in just three days, we are now testing a critical resistance zone between $23.66 and $23.94. This area represents the high from back in March 2022, making it a significant psychological barrier. Traders should watch for a decisive weekly close above this level as a primary trigger for new positions.

Given this setup, a bullish strategy would involve buying call options with strike prices above $25, targeting the longer-term objective of $29.84. The recent rally in Bitcoin, which is now pushing past $115,000, provides a strong tailwind for the entire mining sector and supports this potential breakout. A weekly close above $23.94 should be seen as the confirmation we need to enter these positions.

This upward pressure is further supported by strong operational performance, as we’ve seen RIOT’s network hashrate grow to over 40 EH/s this year. This expansion in mining capacity directly increases revenue potential and makes the company more attractive to institutional investors. The expansion into AI services also offers a compelling, diversified growth story that could fuel the next leg up.

For those anticipating a period of continued consolidation, selling options premium could be a viable strategy. An iron condor with short strikes outside the $18.84 to $23.94 range would profit if the stock continues to build energy without a clear breakout. This approach allows us to collect income while waiting for a more definitive market direction.

Conversely, risk management is paramount, and the $18.84 support level must be respected. A weekly close below this price would invalidate the bullish structure and signal that sellers have taken control. In that scenario, purchasing put options would be the appropriate response to hedge against or profit from a further decline.

We can look back to the period following the 2020 Bitcoin halving for a historical parallel. Many mining stocks, including RIOT, experienced similar consolidation patterns in late 2020 before beginning their massive bull runs in 2021. This current price action feels familiar, suggesting significant pent-up energy for a potential move higher.