City edged back one point ahead of the Reds in the title race as second-half goals from Riyad Mahrez, Phil Foden and Bernardo Silva earned a 3-0 win over Brighton at the Etihad.
Liverpool had gone top with a 4-0 annihilation of Manchester United on Tuesday and Guardiola was gushing about the performance of Jurgen Klopp’s men.
“We are facing one of the best teams ever. They have everything and that is why being there with them means a lot,” said Guardiola.
“It’s simple. Liverpool are going to win all the games. If we drop points they will be champions, if we win all our games we will be champions.”
City have experience of holding their nerve in a tight title race as they won their final 14 games three seasons ago to pip Liverpool by a point to win the league.
Guardiola showed his priorities lie with the Premier League and Champions League after leaving out a number of key players for a 3-2 FA Cup semi-final defeat to Liverpool on Saturday.
Kevin De Bruyne was one of those restored after being rested as a precaution over an ankle injury.
“When the people talk about my magnificent selection for the FA Cup it is for this (injuries),” added Guardiola. “I didn’t want to take a risk because the Premier League is so important.”
Brighton had won on the road at Arsenal and Tottenham in their previous two games and frustrated the English champions for the first 45 minutes.
But there was little doubt over the outcome once De Bruyne’s driving run through the heart of the Brighton defence teed up Mahrez to slot in his 23rd goal of the season eight minutes into the second period.
Any doubt over the outcome was removed once Foden’s deflected effort from a corner worked to the edge of the box gave City a two-goal cushion.
Silva added a third eight minutes from time with an exquisite cushioned finish from De Bruyne’s layoff at the edge of the area.
“You have to be perfect for us to come here and get anything and we weren’t, said Brighton boss Graham Potter.
City captain Ruben Dias made his return from injury after a two-month absence in the second half.
And the Portuguese’s return might have come at the perfect time for Guardiola as John Stones limped off late on just six days before the first leg of their Champions League semi-final against Real Madrid.