Liverpool legend, John Barnes, believes Jurgen Klopp's side will not succumb to pressure and lose their head in the title race as they seek to win their first Premier League in 29 years.
The Reds missed a chance to open a seven-point gap between them and City on Wednesday, but are still five-point clear off the champions.
Liverpool played out a 1-1 draw with struggling Leicester City after Pep Guardiola's side had lost to Newcastle the night before.
But Barnes isn't panicking yet and believes Jurgen Klopp can guide Liverpool to the title this season.
"It's not all doom and gloom," he said, while speaking with talkSPORT. "It was a great opportunity to go seven points clear, but we've added another point.
"It's only January and teams, including Liverpool and Manchester City, will drop more points. We're not going to have another situation like last year where City went so far ahead of everybody else and didn't drop points.
"Liverpool drawing against a struggling Leicester team, City losing to a struggling Newcastle team – this happens in the Premier League.
"So I'd rather see this as a point gained. Yes, it's an opportunity lost to go seven clear, but we're one point further ahead.
"The pressure isn't necessarily going to show now, there's still a long way to go. The pressure really comes into focus around March.
"But I think the Jurgen Klopp factor is very important – he really takes every game as it comes, the pressure is to perform in every game, he puts demands on those players to give 100 per percent time. So I think they're able to handle the pressure."
Liverpool will hope that Arsenal can do a job on City when they meet on Sunday ahead of their clash with West Ham on Monday.