Most likely Real Madrid can win the game against Chelsea, but I doubt Real Madrid can win the game against Bayern or Man City in the next round.
After Real Madrid's performance against Barcelona yesterday, I saw some supporters of Chelsea who insisted that if that was the current form that Real Madrid is, where they were struggling to score goals, that they were going to win them. The game Real Madrid played was in the Spanish league, and the not the champions league. Real Madrid play differently in the champions league regardless of their form in the La Liga, Chelsea do not need to think that Real Madrid will be an equal challenge to them. Both teams are not having a good time in their domestic league.
Chelsea supporters forgot that their team's performance was far worse than Real Madrid. Real Madrid lost to a team that has consistently performed in local competitions, while Chelsea's last game ended in a draw with the team in 15th position. I think they are consoling themselves by saying Real Madrid is not in the best form. Comparison of the two teams this season, Real Madrid is superior to Chelsea. I never even hesitate to say Real Madrid can overcome Chelsea.
Chelsea's performance in the champions league was not actually that bad, I'm pretty sure they have a very fair chance of qualifying against Real Madrid, especially because both of them are struggling I their leagues, especially Chelsea, so both will put all their effort in this face off, so I would not underestimate Chelsea in this one, and I'm actually considering betting on them to qualify.