England winger Raheem Sterling says Liverpool's performance in the 2-1 Boxing Day loss to Manchester City has given the team hope they can compete for honours this season.
Sterling was in the thick of the action from the outset after being incorrectly ruled offside in the first half when through on goal, before playing a key role in the game's opener - a 24th-minute strike from Philippe Coutinho.
The 19-year-old was disappointed not to take an opportunity to get Liverpool back on level terms in the second half, but the winger insisted there were plenty of positives his team could take from their performance at the Etihad.
"This is one of the top teams in the Premier League, so to come away and give such a strong performance just shows the belief in the team that we can go on and achieve things this year," he told the club's official website.
"Coming away to Manchester City, we were looking to get a decent result, and we're not really too happy with losing today.
"We had our chances to win the game - there was my chance at the end as well. As a team, we're really disappointed not to come away with something today."
Midfielder Joe Allen echoed Sterling's disappointment at not being able to take something away from the game but insisted that Liverpool must now focus on their Sky Super Sunday clash away at Chelsea.
"It was great to be involved in a game like that, but obviously bitterly disappointing to come away with nothing," the 23-year-old said.
"The performance deserved a bit more than that, but we'll have to move on and make sure we pick up a result now at Stamford Bridge.
"[The manager said] if we play like that, nine times out of 10 we'll get a win and a result.
"We have to keep our heads up," he added. "There were lots of positives to take from today. We all know the strength of Manchester City at home.
"They certainly know they have been in a game today."
Watch Newcastle v Arsenal and Chelsea v Liverpool live on Sky Sports 1HD from 12.30pm, or for just £4.99 with a NOW TV day pass. http://www.nowtv.com/promo/halfprice