The demonic aspect of so-called "witchcraft" is simply this: The lie that it can accomplish anything at all. No one can figure out the future by looking at the stars. No one can change the world or affect oneself or others by performing superstitious rituals.
And I'll even throw this in: There are many Christians who, unaware, practice a form of "Christian magic" because they have been led astray by bad teachers and bad theology. The most obvious example of this are the advocates of the so-called "Prosperity Gospel" and the "word of faith" movement as a whole. It is literal esoteric beliefs dressed up in Sunday morning attire, just research the history of New Thought and its relationship with 20th century Word of Faith teachers (it's not mere coincidence that they are similar, there is a direct causal relationship between them).
Even outside of this damnable doctrine there are, tragically, many Christians who confuse prayer with magic. The "power" of prayer is not that by speaking words we can manipulate the heavens to operate in our favor; it's in learning to submit ourselves and wait patiently in God's mercy. It is the Holy Spirit who, in keeping us in faith, at the receiving end of grace through Word and Sacrament, keeps us abiding in Christ and preserves our faith that we should wait patiently upon the Lord, and lean upon Him and in Him as our refuge.
God isn't going to make my favorite team win the big game, or get me a new bigger house. But He is a loving and benevolent Father who hears me in my cry, and who comforts me with His mercy, and holds me and keeps me, telling me my sins are forgiven, and that even if in this world there is no justice, there is a Day when justice prevails--for the Lord Christ will come as Judge, and God will right all wrongs and set all of creation to rights; all shall be restored and made new. In this life I get sick, I suffer loss, and I behold the wicked often prosper while the righteous fail. Good is not rewarded in this life, and the widow and the orphan often are neglected, the hungry go without food, and the poor lack basic necessities--God wills that we ought to work toward justice, to feed, to clothe, to provide. But the world itself is unjust. God, therefore, desires that I learn to seek after heavenly treasure, to have my mind transformed, my heart changed, my entire attitude conformed to be that of Christ Jesus, who gave Himself freely, even to the point of the shame and suffering of death on the cross. For in God's kingdom the slave is greatest, the last is first, and the valleys raised up and the mountains laid low.
In the end God shall be all in all.
Superstition only blinds us from the truth of a world suffering in darkness and death; and the loving Savior who by His Cross and Empty Tomb brings light into the darkness, life to those in the tombs, and newness to this old decaying world.
Christ is risen from the dead
Trampling down death by death
And to those in the tombs
Bestowing life.
-CryptoLutheran