The Trotters suffered their seventh defeat from nine outings when they lost 2-0 to Sunderland on the weekend and Coyle admits that the players have yet to show what they are capable of.
He feels confident that he has a group who can put together positive performances but at the moment they simply have not showed that and their position of 18th is evident.
"I sat, and when I thought about it - it's not a team or group of players that are playing out of their skin and not getting results," Coyle said.
"There is so much more to come from them, so in my mind, that tells us that when we pick it up and bring it all together, we will pick those points up and go on.
"This is not a team that is at its' maximum and still not winning games."
He added: "I am very confident.
"I am certainly confident that we have good players and a good team. 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."