It's normal for a bird to take time to get used to a new cage.
@SumitaSinh faced a similar problem with her amazon a while back, I believe.
Have you tried using a t-stand? They often aren't as large as dowels, but have a similar concept.
Also, if he bites the dowel, would he bite at the target stick if you put it between the cage bars nearest him? Although I'd recommend desensitizing him from the target stick first.
What material is your target stick? My cockatiel prefers small chop sticks.
Worst case scenario, you have to use a towel to transfer him to the new cage.
I'll tag some more experienced 'tiel folks.
@Tiel Feathers @Sunni Tiel @sunnysmom @JewellBird