Welcome to TFK, first of all get those feeder fish out of your tank, feeders are known to be kept in very bad conditions and prone to a lot of diseases which could infect your oscars. If you want to cycle with some fish use some cheap livebearers but even with these you run a chance of bringing something in so best method is to just cycle with ammonia.
I'd go ahead and complete the cycle with out moving to oscars over until its ready. I actually do transfer over water to the new tank from the old but that is because in my established tanks my pH runs about 7.6 where fresh tap water runs 8 (actually 7 due to co2 in my water then raises as it comes out), this is simply to buffer the water so the fish don't under go such a dramatic change.
The bloom is most likely due to the bacteria supplement, speaking of which, which one are you using? Some members might be able to guide you better on that.