Inverness had only lost to Motherwell and Celtic before the winter break before suffering two defeats in four days.
But their Scottish Communities League Cup semi-final loss to Hearts came after a penalty shoot-out and they were seconds away from taking a point from finalists St Mirren in Paisley on Wednesday.
Butcher has been satisfied with their performances and was further boosted by keeping key players such as Billy McKay and Andrew Shinnie during the transfer window despite receiving some deadline-day offers.
And Butcher will travel to Kilmarnock for the William Hill Scottish Cup fifth-round clash in defiant nature.
The former England captain said: "The mood's been very good and I'm really disappointed with some of the press reports about a dip or a drop in form.
"These people haven't been anywhere near the games because anyone who saw us on Saturday, and particularly against St Mirren on Wednesday, would say that these boys are doing all right.
"They are playing well, we just haven't got the results, especially on Wednesday, we didn't get the result our performance deserved. It's not a drop in form by any standards and the players will laugh at that because they are playing good football.
"Some of the football we played on Wednesday was some of the best of the season. The lads are fine, there's no problem, the only thing we haven't got is results. We had that in the early part of the season when we played well and just didn't get the wins.
"We will just keep going, there's nothing wrong with the players' morale or hunger and desire. We have come back and played three games and played very, very well and only lost one if you consider one was on penalties."