City fought back from a goal down to win the first-leg of their Champions League round 16 tie 2-1 in Madrid.
Mijatovic remarked afterwards: "I am always optimistic. Madrid is capable of playing a good game. You have to be realistic. This result is very negative. You have to reach perfection to move to the quarters.
"Madrid has controlled the game without finishing. Vinicius and (Thibaut) Courtois have played a good game. Madrid cannot say that it has played a good game and had two chances.
"City has played as it wanted. In three weeks Madrid can recover the best form. Several players have not been in their best form."
On a quiet Gareth Bale, he added: "I was expecting this from Bale because he has not contributed for a long time. He is not in the best shape. The substitute of (Toni) Kroos I see as normal because they play four midfielders and Sunday is an important game (against Barcelona). They are technical decisions."