Can I put plywood floor over my blown in insulation?

If you compress insulation, especially blown, you will not lose ALL of the R-value, sc it back with a snow shovel/dust pan so it's flush with the top of the joists. compressing 16 inches down will put pressure on your sheetrock/plaster on the ceiling below (which is not good), it might not cause it break or crack but over time it probably would.