Dalglish has also accepted that their current run of form - three successive league defeats - has not been acceptable.
"It is a massive game, like any derby is for any club involved in one. We know how much enjoyment the people get out of winning the game but the players get a lot of enjoyment out of it also," Dalglish told The Mirror.
Regarding the recent run, Dalglish added: "It depends what teams you're playing but certainly it's not a record you expect from Liverpool."
Liverpool sit seventh in the Premier League table.