For example, I see an alert like:
"🚨 500 BTC transferred from unknown wallet to Coinbase"
My interpretation of this, is that this whale is expecting the price to go up, so its moving a part of their BTC into an exchange to start trading leveraging that capital.
I see this alert as a liquidation and maybe some part of that BTC can be use for trading which I doubt since whales are not trading that much, they are just buying and holding for sometime and then they'll sell it, whales are not a day trader and leveraging might not be the option for them.
I mostly got informed about the whales actions thru telegram, I just ignore those alert most of the time because I don't know what whales will do with that money so I'd rather not overthink because it can cause stress.