City recovered from going a goal down to a James Milner penalty with a Sergio Aguero to rescue a point and keep City in third place — a point above Jurgen Klopp’s side with a game in hand.
Guardiola says he was proud of the attitude of his players although he is concerned that they missed chances to claim all three points against their rivals for the top-four.
“You cannot imagine. This is one of the happiest days of my career as a manager,” he told Sky Sports. “After our defeat in the Champions League, for two days we were so, so sad and in the training sessions we didn’t talk too much.
“We arrive here against Liverpool, who haven’t had European football all year and had all week to prepare for that game, and how we fight and how we run and how we showed spirit — today is one of the happiest days of my life as a manager.
“The way we play, we concede chances but we create a lot of chances. Like all matches, we create more chances but this is our problem, our problem is we don’t score goals.
“With the conditions we played that game, after being [knocked] out of the Champions League and playing against Liverpool, one of the best teams, and how we played against them means a lot to me — so that is why I am happy with my players.
“We always play to win, we always play to attack, we always play to respect our spectators and of course, we are sad because we didn’t win.”
“When you approach one game after 10 games winning nothing is special. You have to consider the situation we played this game, how we played against them, a top team — they have exceptional players — means a lot to me. That is why I am so happy.”
City were heavily criticised for their first-half performance against Monaco in midweek, when they conceded twice without creating a single opportunity.
But the City boss was delighted with the response against a side that has not been beaten by any of their top-six rivals and had seven days to prepare for the game.
“We lived a tough two days after going out of the Champions League — our mood after what happened in Monaco,” Guardiola told a news conference.
“In the first half we are what we are and in the second half again how many chances we miss was tough and playing against a team like Liverpool, who have all week to prepare for that game, they put absolutely everything into the pitch.
“We were sad and that’s why I’m so happy. It’s one of the days when I’m proud the most to be coach of those guys and more than ever I want help that club, if I’m able, to help the club make the next step forward.”
In a passionate news conference, Guardiola reserved his most effusive praise for much-criticised defender John Stones.
“John Stones has more balls than everyone here,” he said. “I am delighted to have John with all the huge amount of mistakes he has, I love him. Because it’s not easy to play central defender with this manager.”