Pep Guardiola's side went into Sunday's game unbeaten in the Premier League but were edged out in an entertaining affair at Anfield.
However, despite suffering their first loss of the league campaign, Gundogan insisted that City still have the title very much in their own hands.
"It is in our own hands. There is a gap, quite a comfortable gap still, but there are still a lot of games to play," he said.
"We need to learn now, especially from those 10 minutes when we were not fully there.
"I am quite sure that we will and then we are going to bounce back and find again, 100 per cent, our way. I am sure that it is then nearly impossible to stop us."
Meanwhile, the former Borussia Dortmund man said that City's players were under no illusions that they would eventually lose a game, despite suggestions that they could match Arsenal's famous 'invincibles'.
"He [Guardiola] always said the day would come where we lose a game," said Gundogan.
"Obviously everyone is disappointed because we don't think we deserved it. It feels kind of weird but the day has come and it is something we need to accept."