Victory for Los Blancos saw them leapfrog Barca and move top of the table with just 12 games left to play.
Setien said it was a “tough defeat” for his side but thinks there is still a long way to go in the title race.
“Last week, we were two points up. Now, they are one up. There is much left and this [title race] can take many turns,” he said.
“It’s a tough defeat because these games affect you when you lose them, obviously, but we have the ability to recover.
”There are positive things to rescue and we will analyse what we have not done well.”