For sure, i.e. when BTC price drops, weak hands start to sell their BTC's, and this causes the price to drop even further, that is why a lot of people believe that with fewer weak hands, there would be lesser volatility. Take note that this weak hands are also the ones caught in the fomo rush when the price starts to rise again as they rush to buy the coins they sold.

However, as for BTC usage, it can mean a lot of things based on BTC's use cases, i.e. it could be holdings coins, spendings BTC, setting up BTC strategic reserve, buying BTC shares through etf, etc. Demand or adoption obviously influences BTC price movement, since we already have a capped supply, a high demand would move the price upward.