Taylor told BBC Radio Leeds: "We are not in a very good run and have to work very hard to get out of it.
"We have to be honest and realistic about it all. We are looking down rather than up at the moment."
Taylor added: "We have lost four in a row and that does not make us play-off contenders.
"The work-rate of the team is first class and the cleverness of the team at the moment isn't first class.
"But that's where the return of Michael Flynn and Simon Ramsden will help us. That will mean we can get more experienced and controlled heads on the pitch."
Two straight wins at the start of 2011, over Lincoln and Bury, put Bradford just outside of the play-offs and confidence was high they could finally break into the top seven.
However defeats by Crewe, Aldershot, Oxford and Barnet have seen the Valley Parade outfit drop to 18th in the table, after claiming just nine wins from 26 league games.
They are just eight points of the play-offs in a tight division but just five above second-bottom Barnet, although they have played a game less.
The club have been boosted by the loan signing of John Worthington from Oldham.
He has joined on a month's deal with a view to it being extended for the entire season and he is more than happy to join City's fight to stay in the Football League.
"I'm happy to join Bradford in this position and want to fight for them," he said.
"It's time for us to roll up our sleeves, get stuck in and get climbing back up the table.
"It's a frustrating time for the club. It is a very young squad and we have to stick together.
"We have to keep our heads high, going into some tough games, and remain very positive if we are to improve our results."
Source: BBC Sport