Riot Platforms, Inc. (RIOT) is growing its presence in Bitcoin mining and digital infrastructure. On Monday, the stock rose by 7.38%, closing at $23.00, bringing its three-day increase to over 21%. Since October, RIOT has been consolidating in a bullish pattern, with a noticeable resistance point at $23.94. The stock previously hit $23.66 on March 28, 2022. This range of $23.66 to $23.94 is now an important resistance level. If RIOT closes above $23.94, it could lead to a rise towards $25.11, with a long-term target of $29.84. On the other hand, if sellers maintain the resistance, the first major support level is at $18.84. This level is critical, as it has been reached before and plays a key role in the stock’s pattern. Staying within the range of $18.84 support and $23.94 resistance could lead to a breakout. However, closing below $18.84 would disrupt the current bullish consolidation and slow progress towards the $29.84 target. With RIOT’s stock gaining over 21% in three days, it is now testing a crucial resistance area of $23.66 to $23.94, which is a significant psychological barrier. Traders should look for a strong weekly close above this level to signal new positions. For a bullish strategy, buying call options with strike prices above $25 could be beneficial, aiming for the higher target of $29.84. The recent Bitcoin rally, now exceeding $115,000, adds momentum for the mining sector and supports this potential breakout. A weekly close above $23.94 would confirm the opportunity to enter these positions. This upward trend is backed by strong performance, with RIOT’s network hashrate growing to over 40 EH/s this year. This increase in mining capacity boosts revenue potential and attracts institutional investors. Expanding into AI services also presents a robust growth story that could drive further gains. For those expecting continued consolidation, selling options premium may be a good strategy. An iron condor with short strikes outside the $18.84 to $23.94 range would benefit if the stock continues to build energy without a clear breakout. This strategy allows for income generation while waiting for a defined market direction. Risk management is essential, especially around the $18.84 support level. A weekly close below this price would invalidate the bullish outlook and indicate that sellers have taken control. In that case, buying put options would be a suitable way to hedge against or profit from a potential decline. Looking back at the period after the 2020 Bitcoin halving, we see similar consolidation patterns in many mining stocks, including RIOT, before they started significant bull runs in 2021. The current price action appears familiar, suggesting there is considerable pent-up energy for a potential upward move.

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