Exactly, holding your coins can earn you good profits if you hold them just for sometime until the price goes to a reasonable amount that can earn you some good profits, but it can reduce your profits if you hold them for too long because we can never know when the price starts dropping again.
The price of bitcoins may go up and down in the short term, but in the long term it increases. Holding it for long term is a good idea if you have available funds.