Thomas Keightley writes in his book, The Fairy Mythology:
The popular belief in Ireland also is, that the Fairies are a portion of the fallen angels, who, being less guilty than the rest, were not driven to hell, but were suffered to dwell on earth. A clergyman was returning home one night after visiting a sick member of his congregation. His way led by a lake, and as he proceeded he was surprised to hear most melodious strains of music. He sat down to listen. The music seemed to approach coming over the lake accompanied by a light. At length he discerned a man walking on the water, attended by a number of little beings, some bearing lights, others musical instruments. At the beach the man dismissed his attendants, and then walking up to the minister saluted him courteously. He was a little grey-headed old man, dressed in rather an unusual garb. The minister having returned his salute begged of him to come and sit beside him. He complied with the request, and on being asked who he was, replied that he was one of the Daoine Sidhe. (The people of the hills, or the sidhe.) He added that he and they had originally been angels, but having been seduced into revolt by Satan, they had been cast down to earth where they were to dwell till the day of doom. His object now was, to ascertain from the minister what would be their condition after that awful day.
That’s what some humans say, anyway.
I suppose that if you’re meant to get psychic powers or to know something, then God will grant them to you. This is the way I was taught to understand the story of Joseph and the Coat of Many Colors…that, he had the ability to dream and interpret dreams, but he had at first been arrogant with this gift and perhaps believed that he was free to say to his family that they would bow before him. When he was sold into slavery and then into prison, when the other prisoners with him had dreams, he could interpret them correctly but only with God’s guidance.
It’s also a bit of Moses in the desert…God told him to raise his arms up and that water would burst from the stone. Moses struck the stone with his staff instead, and was punished by never being able to inhabit the land that he was leading these people to. This could have been because striking the staff was symbolic of Moses doing “magic” or working a miracle by his own power…or so it seemed to the people he was leading, and that was why God gave specific instructions for Moses which was not to do that, and also why Moses had to be punished for doing it anyway: It was a show of self-empowerment, not of piety.
But then, the denomination that I was raised in might be very different than the tradition or path that you follow, even if we might have heard the same Biblical stories. Best wishes on your exploration!