Bagons are only in one room of Meteor Falls. Here's my guide on how to get there... once I find it at least ^_^
From Route 114 - head left, down the stairs and to the water, where you Surf, then use Waterfall. Head towards the hole in the wall, and go through it. Then, walk up until you see the ladder, and go down it. Go down slightly, then left and upwards until you come to another ladder which you go up. See (and fight if you wish) the old couple there, and fight the Dragon Trainer before taking the left sandy things down until the penultimate one, where you turn left and go down some more stairs. Go to the water and Surf north onto the dry land, and through the hole in the wall. Bagon can be found anywhere in this room apart from the water.
As for the level, it should be anywhere from 25 to 40... well - that's the highest I've seen it anyways.