Without a doubt, it is possible to trace a Bitcoin (BTC) transaction. Bitcoin browsers allow you to map activity on the Bitcoin blockchain. Thanks to this transparency, transactions are trackable and the blockchain can be thought of as a kind of open database full of Bitcoin transactions. A Bitcoin address alone is not trackable, as there is no identifying information stored directly on the blockchain.
However, there are ways in which a person's identity can be linked to specific wallets they own and to the transactions they have made. Many believe that Bitcoin is completely anonymous. However, with forensic analysis, any Bitcoin address used in a transaction is highly likely to be trackable. This means that Bitcoin transactions are actually pseudo-anonymous.
Bitcoin works with an unprecedented level of transparency that most people aren't used to dealing with. All Bitcoin transactions are public, trackable and are permanently stored on the Bitcoin network. Bitcoin addresses are the only information used to define where bitcoins are allocated and where they are sent. Each user's wallets create these addresses privately.
However, once addresses are used, they become tainted by the history of all the transactions in which they participate. Anyone can view the balance and all transactions from any address. Since users often have to reveal their identity to receive services or goods, Bitcoin addresses cannot remain completely anonymous. Since blockchain is permanent, it's important to note that something that can't currently be tracked may become trivial to track in the future.
For these reasons, Bitcoin addresses should only be used once and users should be careful not to reveal their addresses. When creating a wallet, users receive an address that allows them to receive coins. This address is just a long string of numbers and letters, but each one is unique to the wallet. This raises privacy issues on the network, since anyone can enter and view any transaction you've sent from that wallet.
It's also important to note that, since you can see all the transactions that take place on the Bitcoin network, several Bitcoin addresses can be grouped together. All Bitcoin transactions and the addresses of the wallets involved are recorded on a public blockchain, the Bitcoin blockchain, to be more specific. People need Bitcoin addresses to transfer Bitcoin to each other, and the process is also similar for most other types of cryptocurrencies.