The Trotters were beaten 2-0 at home by Sunderland on Saturday, their seventh defeat in nine Barclays Premier League fixtures so far this term.
Wanderers also finished last season poorly after being hammered 5-0 by Stoke in the FA Cup semi-final, before which they had generally made impressive progress under Coyle since his appointment as manager in January 2010.
The Scot readily acknowledges that recent performances have not been good enough, but Coyle has not let that dent his faith in himself of the group he is working with.
And ahead of tonight's Carling Cup fourth round trip to Arsenal, the 45-year-old has called on the squad to match his upbeat attitude.
"I am certainly confident that we have good players and a good team," Coyle said.
"I also certainly know that I am a better manager today than I have ever been.
"Yes, there are trials and tribulations, but that is the nature of football. If you thought it was going to be smooth, then you know you are in the wrong game.
"You are always going to be tested and what you have to do is stand up and be counted.
"Confidence might have taken a dip with one or two of the players, but it is up to them now to come through that and show their character and quality - and not be worrying about making mistakes."
He added: "We must not feel sorry for ourselves. You need to get out there, working ever so hard, looking to bring your quality and show people what you can do, not worrying about what you can't do.
"That has to be the focus. They have to be aggressive and positive in everything they do, and when they do that, they will win their games, I've no doubt about it."
One of Bolton's league defeats was a 3-0 reverse at the Emirates Stadium last month, although it is expected that it will be a much-changed Arsenal side lining up against Wanderers this evening.
Coyle has confirmed that he will also make plenty of adjustments to his own team, with the likes of Adam Bogdan, Zat Knight, Gretar Steinsson, Fabrice Muamba, Mark Davies, Ricardo Gardner, Gael Kakuta, Ivan Klasnic and Tuncay Sanli all set to come into the first XI and youngster Joe Riley to feature in the squad.
"We will have eight or nine changes, guaranteed," Coyle said.
"We have players who need to play and show what they are capable of.
"It is a difficult tie, but that is the nature of the cup - whatever the draw brings, you have to deal with it."
On-loan defender Dedryck Boyata, who came off with an ankle problem in the Sunderland match, is ineligible for the game but Coyle hopes the Belgian will be available for the trip to Swansea at the weekend.