Precisely.  But long term, a country banning bitcoin is probably a good thing for price because smart people will then see the true nature of the authoritarian thugs in charge of that particular government. The smart people in that country will realize that they need an escape plan just in case the worst happens.  Fiat or money in a bank account can be (and often has been) frozen and stolen (seized).  Capital controls can be in place at borders.  Gold or other PMs will be taken at the border.  Under those circumstances people should be buying some bitcoin in order to be able to flee with some money if it comes down to it, meaning more demand for bitcoin.

A government that doesn't wants to control everything that their citizens do is an evil government.  Look at China and Venezuela for example.