Now the question is, assuming everyone who ever bough bitcoin is holding their bitcoin in their private wallets, what will be the fate of bitcoin and the bitcoin network? Does holding bitcoin strengthen the bitcoin network? If no, are those who sell and more their bitcoin on-chain generally doing bitcoin bad?
You holding bitcoin is not adding any impact in the market price, but before you started holding you bought bitcoin and that buying order in correlation with other buyers create a significant impact in the market chart. However the market price is influenced by several factors of which one of the greatest is buying and selling bitcoin. If everyone decides to hold their bitcoins, no transaction, no buying no selling, it would affect every part of the network both mining and the price is likely to drop rather than appreciating. The little moves we see in the chart every second, minute, hours, days.... is as a result of the orders going on in the market not because people are holding their bitcoin, holding tends to favour the holder and not the network, it's buy and sell that matters most.