After dominating the first half against the Trotters without managing to convert, the hosts deservedly broke the deadlock in the 53rd minute through the lively Michael Kightly, but they subsequently imploded.
"People can say what they want to say - there are still 21 points to play for," said Connor.
Martin Petrov's penalty (63) - contentiously awarded after Roger Johnson's challenge on Mark Davies - and further goals from Marcos Alonso (80) and Kevin Davies (84) saw Wolves fall 3-1 behind, with Matt Jarvis' 88th-minute response proving a mere consolation.
Rock-bottom Wolves are now six points adrift of safety in the Barclays Premier League and have taken only one point from a possible 18 under Connor, suffering five losses in a row.
The home matches they have among the seven they have left are against Arsenal, Manchester City and Everton, and Connor's predecessor Mick McCarthy had said in the build-up to this game that Wolves would have to win it to stand any chance of staying up.
Instead they lost, but Connor is adamant the battle must go on.
Asked how the team could turn things around, Connor said: "By continuing to play like we did. We dominated the game for an hour, scored, got in front. Then there is a penalty decision, which I've only seen once back.
"For me, it is a very dubious penalty decision. I didn't think the Bolton lads appealed with any great gusto. Our lads are adamant that it wasn't a penalty and that has a big bearing on the game. But in terms of the performance in the first half, the lads were terrific.
"Everyone called this a must-win game and I recognise the importance of it, but there are still seven more to play and I am not giving up any hope until someone tells me that we can't do it."
Source: PA
Source: PA