Michel has conceded that his new Olympiacos side were inferior to Levante over the two legs of their Round of 32 clash.
The Valencians picked up a 1-0 away win on Thursday evening to round off a comfortable 4-0 aggregate win to progress to the Last 16 where they will play Rubin Kazan.
“We’ve been bad, Levante have been clearly better than us,” reflected former Sevilla boss Michel at full-time.
“This should serve as a lesson to us in the future. Playing against a team as defensively organised as Levante have been prevented my players from reaching their potential.
“It is not to do with the players not wanting to create chances, they have not been able to. Our errors were then more for anxiety than any lack of quality.
“We never had control of the game in the first half. After the goal against us we were nervous. That goal has made the game almost impossible from the start.”