I'm thinking it has less to do with witchcraft and more to do with energy. Sexual energy can be a very powerful force when we are around people we feel a pull towards.
What you are doing is projecting your energy out, and that energy is affecting those around you. This is actually something you need to stop doing since you are forcing your energy on other people. An easy way to control your energy projection is to wear black tourmaline. Black tourmaline creates a protective barrier between you and other people.
I'm not sure what you mean by "I have witnessed my conscious thoughts start to affect a person who is dreaming, based off of their reactions to what I am thinking." To me this seems a little creepy or stalker-ish.