Portugal Didi Taihuttu trades based on his self-made Bitcoin price indicator based on lunar cycles and dozens of traditional indicators.
In Lagos, a small coastal town in southern Portugal, Didi Taihuttu starts his day lying on the terrace of his villa. It is a house on a hilltop overlooking the sea. In the sunlight, Taihuttu drinks black coffee and monitors the price chart of Bitcoin on his laptop.
In 2017, this Dutch family of five became famous for selling all their assets, from a profitable business to their 2,500-square-foot house and even their shoes, to buy Bitcoin and start a life of traveling around the world. At that time, Bitcoin was only worth $900 per coin. Currently, this currency is trading around $30,000 and was close to $70,000 in November 2021.
These price swings have helped Taihuttu grow his fortune significantly. For the past seven years, Taihuttu has been trading Bitcoin and stablecoins. Whenever he thinks Bitcoin has peaked, he converts Bitcoin to stablecoins like tether, USDC, and DAI. When he feels Bitcoin has bottomed, he buys more. Taihuttu says his strategy works best thanks to a tracking indicator he created before the pandemic, called Didi BAM BAM.
The Taihuttu family in Lagos (Portugal). Photo: CNBC
Taihuttu's index is based on a variety of constituent factors, from trading data to lunar cycles. All of Taihuttu's investment decisions over the past few years have been based on Didi BAM BAM.
“From mid-November to early December 2022, we saw signs that the bear market was coming to a complete end. This was confirmed in January 2022, when bullish signs appeared,” Taihuttu said.
The father of three said his Bitcoin holdings have increased by 50% since their recent low. The Taihuttus declined to share how much they hold in Bitcoin, but said they bought Bitcoin as soon as it hit $19,000, so “it’s not too bad.”
Their current home is in Portugal, which is considered a cryptocurrency tax haven in Europe. “You don’t pay capital gains tax or anything related to cryptocurrencies here. As long as you don’t receive payment in cryptocurrencies for providing services, you don’t pay anything. It’s a Bitcoin haven,” he said.
When he started trading tokens, Taihuttu also used traditional models to predict the market, such as Stock to Flow (based on the scarcity of an asset) or Mayer Multiple (taking the current Bitcoin price divided by the 200-day moving average price). But then, realizing that they were not useful to him, Taihuttu decided to create his own forecasting model.
“Knowing what ingredients go into a recipe isn’t enough. You need the math,” he says. Since 2019, Taihuttu has been working on engineering and astronomy.
“This is a combination of Bollinger Bands, Lower and Upper Bands, NMA, Red/Green Ribbon, NormStoch, RSI, Price Oscillator, Plot, MACD, Cross, Chande Momentum Oscillator, RSI-EMA, Full Moon and New Moon theory,” Taihuttu said, listing dozens of popular market indicators that investors often look at when making decisions.
Price chart using DiDi BAM BAM indicator. Photo: Didi Taihuttu
There are also invisible factors that influence prices, like the lunar cycle. “I wouldn’t say it always has an impact on Bitcoin prices, but the moon has a lot of influence,” Taihuttu said. He noticed that people tend to trade more when the moon is full or quarter.
"They tend to buy more, or sell more. It could be a coincidence. But if you look at the chart, most of the time on full moon days, there will be a dip or a spike," Taihuttu said.
The lunar cycle also affects the opening/closing of Bitcoin options each month. “If the price is at the upper Bollinger Band and it’s a full moon, there will be a sell-off,” he said.
Taihuttu usually sells DiDi BAM BAM to investors. But he said he will soon give some away for free to promote the popularity of Bitcoin.
Still, Taihuttu admits that his business will eventually lose its edge to artificial intelligence. "Now anyone can go to ChatGPT and ask: Write me an indicator based on this or that. I'm going to run out of business," Taihuttu concludes.
Ha Thu (according to CNBC)
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