Basically based on the low price of the market many of them are withdraw their money because they are thinking it will loss more but its not a good decisions because if you hold now you can get better profit in future also this will give a healthy benefits after few days later.

I think when there is a lot of withdrawal and there  will be less available coin, there  should be increasing in coin

Crypto currency market is for long term. So, it's better if you can hold your money because the price will increase very soon, you would be able to sell it at that time.

This will basically fall under the Law of Supply and Demand. Here's a link to understand a few things about it.

https://www.investopedia.com/terms/l/law-of-supply-demand.asp

But it also depends on how popular or efficient a coin is.

Yes, may be it will have an effect to the market but if only one person will withdraw and sell their bitcoin it will not affect so much. When people starting to have an panic selling because they notice that the value of bitcoin will continually decreasing it is now the time to have a big effect to the market.

Uncertainty in crypto is high, but if there is no urgent matter to use the money then it is better to stay the money in crypto currencies as there will be a possibility to increase later. There is still hope to see better price and earn profit rather than withdraw presently with bloody loss.

It indirectly affects the market. The prices of this cryptocurrencies are largely dependent upon the demand and supply of this coins. So, this might be one of the cause of the price soaring.

everything has its own usages and there are times you keep coins in your wallet and there are times you do it on an exchange. if you do it for wrong reasons then you are making a mistake.

a wallet is obviously is to "store" your coins. cold storage for long term and extra security and hot wallet for short term and the money you need to be available to you.
exchanges are used for trading and nothing else if you store coins there you are making a mistake but sometimes you need to keep them there for example when you are trading, you keep them in an open order or keep some shitcoin ready in a stop loss order to dump immediately if the dump started. or sell it before the pump ends to secure your profit.

I don't know what you are talking about. all I remember is that there was a lot of drama about China. they announced closure of their exchanges and because of the panic bitcoin price dropped, it had little to do with Chinese themselves and whether or not they withdrew anything.
then the price went up because bitcoin was on the rise before the FUD and nothing can slow down bitcoin's adoption for long.

In every market, they are what we called supply and demand in the market, which is applicable to crypto market trading platform, which fall in demand, which we see as demand process, yes it we affects the market falling, if the supply is not strong.

Yes, this is the reason why bitcoin price is unstable. I think withdrawal will not increase the market, it will decrease maybe. I am not sure as I am still new to crypto world and still learning a lot from cryptocurrencies.