I think most of the sensations you have now are indeed in your head. I think the diagnosis of balanitis (which means irritation of the penis) was most likely correct. The negative tests just confirm this. You'll need to follow up on the blood in the urine--I don;t know what that means. If you don't feel comfortable telling your regular physician about this, see a walk-in clinic or other facility. It doesn't sound sexually related, but you do need to find out what, if anything, it means.
Take care.
Dr. Rockoff
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It worked on my penis, it worked on my friend