The following lines invoke a paradox between emotion and intellect. Bowie struggles with his faith in love. He is not exactly sure if he can trust "the joys of the flesh." He alludes to the powers of the body--breath and skin.
Reminds me of 'Heaven's In Here'--"Skin on skin" and 'Dreaming My Life'--"Was it air she breathed?" The line about it being only make believe and nobody was really dancing conjures up dream lovers, imaginary and elusive.
Longing and desire giving birth to imaginary lovers. The stuff of a vivid "head trip" and "heart's desire."
(Skin tell me) turn it around
(Head tell me) make it alright
(Nobody dancing) miracle goodnight
(Breath tell me) turn it around
(Heart tell me) make it alright
(Nobody dancing) it was only make believe