Manchester City manager Manuel Pellegrini admits Liverpool scored "two beautiful goals" as he saw his side succumb to a 2-1 defeat at Anfield.
With Chelsea not involved in this weekend's Premier League action, the Citizens could have reduced the gap on the leaders to two points.
But two brilliant goals from Jordan Henderson and Philippe Coutinho have dented Manchester City's Premier League title defence.
"It was a close game but Liverpool won because they scored two beautiful goals," Pellegrini told Sky Sports.
"But in the first half we lost too many balls, especially in the first 15 minutes. After that we equalised and then hit the post through [Sergio] Aguero.
"But in the second half we didn't arrive in their box so we tried to change our style of play.
"Playing two up front at Anfield was the best decision. It was a close game and they won the game when we had one striker on.
"I'm concerned that we are losing the ball too much - pressure is a factor. There is much we must analyse to improve.
"It is three points less with one game less.
"Of course it is difficult to reach the top of table if you lose three points. But we must keep going and try to return to our normal performance and see where it takes us."
