to me if you don't sell how would the market make increase for bitcoin to grow back to normal price, it's the buying and selling that makes the market to rise again, so if everyone decided to hold how do you think bullish will come after the bearish.
I don't think this is the right analysis in market terminology. Cryptocurrency market is just like any other market (maybe with little variations , whales etc) that operates with the law of demand and supply that says; the higher the demand, the lower the supply and the more a commodity gets scarce, the more valued it gets.
In clear terms, hodling should make bitcoin increase in price because it makes it scarces for people to get. So your analysis might not be totally correct given the laws of demand and supply.