What is happening to me? Medication?

When I was abroad, I began to have racing thoughts while sleeping, and being a hypochondriac, assumed that I was having psychosis. I became scared and obsessively googled symptoms. Subsequently, I felt really detached from my surroundings and from people- almost as if they are not real. As a result, objects and sounds startle me and seem strange. As do the people around me. Despite this, I am able to maintain a conversation with people, but I feel uncomfortable all the time. Contrary to becoming withdrawn, I seek out people to meet. But I feel increasingly detached from eveyone and everything. Things like a bottle phone etc feel strange to me (even though I know what the reality is) and as do sounds. I have no voices or hallucinations. A psychiatrist saw me and prescribed antipsychotics, saying I have mild psychosis, and I should take these to prevent from getting psychosis. What do I have? Could it only be anxiety? Does mild psychosis require medication? I dont want to take medication