You can see a flash with the sun hitting the panels if you are at the right angle. I have seen with the naked eye a satellite fade out and fade in because it was tumbling. Yes, the Dragon was very low since it has to catch up with the ISS in a lower orbit. It will start boosting its orbit slowly to rendezvous with the ISS.
How fast was it going? Was it keeping up with the ISS? If you saw flashing lights then it was a plane.
I have been observing satellites/space stations/shuttles since I was fourteen and I never get tired of it. My first spacecraft I observed was the Salyut 7 space station. There are lots of fun things to observe, the orbits especially, you can see a lot of polar orbit satellites at night.
Keep looking up,
SM