I think in a way, yes, that may be correct.
Though if a huge part of users will hold, it will reduce the supply overall - bitcoin depends on the demand/supply concept so we can say that it will increase the value.
But of course, buying and demand is as important as well as it keeps the balance. I cannot imagine other people apart from those who hodl their coins not buying coins, they will as the interest for cryptocurrency with newer users will always be there.
Many investors may have emergency needs and forced to sell. Some others fearing further downfall may sell. So complete holding not possible. If everyone really did hold their BTC rather than sell and the demand stayed the same, then naturally the price would go up as supply would be lower.