The result leaves Girona sitting in 16th place on the LaLiga table, just three points from the dropzone. Betis were leading 3-0 at halftime before Cristhian Stuani struck an 88th minute consolation.
Michel said afterwards: "We haven't hit rock bottom, but we have hit rock bottom emotionally. There are six games left, and we have a lead over two rivals. We have to keep our distance and fight as hard as possible to stay in the Primera Division.
"Let's row together"
Girona began the season as Champions League qualifiers and potential title contenders.
But Michel conceded: "It's a complicated season with a lot of things that have happened. What we can do is try to solve the problem we have. I want to look forward. First, we have to have empathy with the players and myself. We worked very hard and we tried.
"But I understand. We're coming off nine games without a win. They score on a set piece and it's a tough blow. The team had intention, not a great spirit, but the intention to go after the opponent. We found a second goal due to a major error on our part with the ball. The first half was very painful, that's the reality. It's not easy for people outside to understand that the team is suffering on the pitch. We have to overcome it and be able to rise from this situation."
He also said: "There's no need to look for excuses outside the box, and no one should jump ship. Let's row together. We'll be able to turn this around, and I'm convinced we will."
"I believe in my players"
Michel, meanwhile, called for the fans to realistic with their ambitions as they fight against the drop.
He also said, "When you build a new squad, three competitions, a preseason where you don't yet have the bulk of the squad because there are international teams... we're in a slightly different and complicated market. We're Girona. Everything was new this season.
"We've signed twelve players, and building a team isn't easy. And you have to do it in the competition. There have been injuries and problems, but in the end, it's football. We have to find a solution to what we're experiencing now. It's not a football issue, it's a mental, emotional issue. I'm convinced of the quality of my team.
"They're capable of playing well and winning games. We have to lift the team's spirits. I feel strong and I believe a lot in my players. I have to convince them."