"We have had a couple of wins before the defeat and it is not the end of the world," he insists.
"I thought we were all right until they scored and once that happens the game changes, they have a lift, and they start making it a bit difficult for us.
"But we are still up there and not too worried because it is just one game, and we have shown good form after the Christmas period - we just have to kick on next week.
"We want to pick three points up at Sheffield United because they are around us and we missed out on Saturday - we must bounce back.
"We are disappointed but not too disappointed because we have to move on and take the rough with the smooth."
As to whether new blood is needed, Michael adds:
"It is not for me to say - if the gaffer has got the money and he gets the right players then great but I still think we are capable, with the players we have got, to get promotion.
"It is going to be tough but we knew that before we started this campaign; we are just going to keep going and see where it takes us.
"We are definitely going to be in the top six but ideally we want to be in the top two - we will have to wait and see."
Michael feels West Ham should have had a penalty when Richard Creswell appeared to bring Robbie Stockdale down and he adds:
"I thought the one on Robbie especially was a strong shout but the ref didn't want to give it - it was one of those games and disappointing to lose after taking the lead again."
Regarding West Ham's rivals' results at the weekend, he says:
"Obviously you know the other results but I don't take too much notice; we concentrate on ourselves and get on with the job."
And, as to whether he would consider his future if the Hammers do not go up, he says:
"I think we are going to go up so that is not the case."
Alan Pardew admits there is a real problem at home and adds:
"We've made Upton Park a hostile stage by the manner of our performances; we look like promotion contenders away, but at home we are very nervous.
"We have got to be brave because this is a tough stage and I need to look at bringing in some characters who can handle the pressure of playing in a big stadium.
"Players with big reputations will have to look at themselves; the team needs significant change; that is going to be tough for the board, but we need players who can cope with being at a club this size in this division - and talented players who have big characters are expensive.
"The stadium can be a positive thing but at the moment it's a becoming a negative and the body language of players when they concede is not what the fans want to see - you have got to be brave here and I've got to look at the side very carefully in the next home game because we have not played well at home for a long, long time.
"At least when Anton Ferdinand came on he showed me something, the right attitude to retrieving the situation; I said to the players I have no worries about Sheffield United away but the next home game is Rotherham and I have to have players out there who can deal with the stage.
He admits that losing at home to West Brom after being 3-0 up did affect the players, and he explains:
"That game did not help - since then, we have really looked edgy at home and I have some sympathy for the players in that.
"But it was some time ago and we've got to show the right character at home because we've got no automatic right to go straight back up."