It is correct, bitcoin need to be spend, bitcoin need to be circulated so it can become stronger and more stable, most of us suggest to hold in a bad situation, in the bearish market, we always suggest to hold to prevent deeper lost, we are expecting bitcoin to be currency, but in reality its more famous as an asset, and I don't mind it being used as an asset because there are not a lot of place that can used bitcoin for payment and we need the transaction volume, so bitcoin also depends on trading volume to survive.
Holding it is good, but it will be not good if you selling in the wrong time. I think you are absolutely right and that fact is that we cannot all hold Bitcoin at a particular time without selling some. I think most people think that btc is just exist for their own good. We all preach that people should hold and that is just to prevent people from selling cheap and when the number of sales is reduced. People usually think about how to be success with btc. Demand will increase and that will mean that Bitcoin price will increase as well. I guess it is normal that people think so because we all want to get profit with btc and not just for the sake of the world.