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It's allowed in the sense all you have done is make an order, but BT hasn't accepted your order. Until it does so no contract between you exists. The offer or advert is just an "invitation to treat".
Nevertheless, I would expect BT to give you an explanation as to why it has been cancelled. One common reason for a supplier to cancel an order w/out any reason is failure of credit check.
Did you cancel or tell your old ISP you were leaving? You shouldn't. You should just sign-up with the new ISP & let them handle everything.
You'd best contact your existing ISP to say you're staying before they cease your BB. Is it still running?
What does BT Broadband Availability Checker estimate for your phone number? Post just the whole table and the line above it, blanking out your phone number. If it doesn't recognise your phone number, use the Address Checker, not the Postcode Checker.
Also look in text below the table for something like:
That's promising. There's nowt about a cease or order being on the line.