For noobs, HODLing is a term used for "holding" your assets (here: Bitcoins) for a very long time. But, isn't it true that those who bought it at $500 once should have sold it at $20k peak, and if not, why didn't they sell at $15k? BTC didn't crash all at once and they had the opportunity to sell and wait for another opportunity. A $15k per BTC against a $500 BTC - means a 30x return itself. And BTC crashed to $3k, if not $3k, then these hodlers would have bought back at $6k which is even less than half of $15k as they would also have added a lot more liquidity to the markets with too much money on the table. Isn't it true that too long a hodl can stop you from taking great opportunities while sitting dumb and waiting for a specific target?
If you look at it in that way the answer is yes, however those that have decided to hold their coins for the long term either do not have the capabilities to trade the markets, which is what you are describing or they do not have the time to do it and that is why they prefer to keep holding their coins, and while to you this may seem like a wasted opportunity at the end it depends on your current economy status.
If you are already wealthy thanks to your bitcoin for you it does not really make a lot of difference if the price of bitcoin goes down as not all your money is invested in it so you can endure the crashes and only sell if bitcoin happens to reach your target price, and to all of this we must add there are holders that have no desire at all regardless of the price as they believe bitcoin will become the dominant form of currency in the future.