Certainly possible. Say the Confederacy wins at Antietam in 1862, and Britain reaches out with an offer of mediation, but a later defeat (say October or November) still allows Lincoln to issue the Emancipation Proclamation. The initial (and obvious) rebuff of mediation would perhaps cause Britain to recognize the CSA in an effort to force mediation, and this would most likely to lead France and Spain to follow suit in close order.
That's a problem for Lincoln since it opens the CSA to international banking, loans, and other issues which make life for the Confederacy easier, and any further tensions with European powers mean that there is even more scrutiny regarding the blockade since going into 1863 nations like France and the Low Countries will wonder why they are having to deal with the Union blockade for cotton rather than directly with the Confederacy.
However, as bad domestically as recognition would be, since it is a big propaganda and morale boost for the Confederacy, if the European powers did not move to back it up with force - at least to the extent of France and Britain conducting a joint naval action in the Caribbean as a sign of 'we will break the blockade if you don't conduct negotiations' - then it's a moot point. Britain and France will not win Confederate independence for them, and even pre-Antietam was only supposed to be 'supporting facts on the ground' where Confederacy had shown it could win the war in the field to European observers satisfaction. If they can't, well that's just a recognized country that couldn't win its independence. For reference, the Second Mexican Empire was recognized as the legitimate government of Mexico between 1864-67, but absent European support, no one was too bothered when it crumbled and the European powers moved on. The Confederacy would be the same way.
Sure when the CSA loses it will sour relations between the US and Europe for a time, but it won't be the end of the world.