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.
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. 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.