Is Bitcoin entirely anonymous? It’s common for people to say that in reality bitcoin is absolutely anonymous but are not knowledgeable enough to know that is pseudonymous . Bitcoin being pseudonymous rather than the assumed anonymous gives us an understanding that each user has a established public address. So that further tells us theoretically bitcoin address can be traced back using an IP address or an exchange account.
We should be more concerned about to what level or extent is bitcoin anonymous ?
It's anonymous, but not if you want to buy with USD directly. someone has to give it to you, or you need to do shady deals like the internet scammers. May be other ways. Maybe you can convert USD to another less restricted fiat currency, but I'm not sure where you can physically buy bitcoin totally anonymously using a fiat currency. Possibly you could barter and sell goods for btc as payment.
Bitcoin still has ways to trace you, but it's much harder. And your knowledge of internet security in important. VPN, what's on your computer, definitely don't use Windows 10 which is pure spyware, Microsoft knows everything you do at every second. Etc.