I know that Liverpool is in their best form and they have not experienced any difficulties since the beginning of the season, doesn't mean that we should underestimate Real Madrid because of the trauma they are experiencing in the club. However, I believe that they might surprise us on that day, but it will not be easy for this to happen, because Liverpool is also ready for them.
Liverpool started the season playing against some clubs that are not too strong. The only big club they have faced in the Premier League is Chelsea and Arsenal out of the total number of game played this season. In other league i can barely think of any other big club they've played. So i would say it has been quite an easy pass for Liverpool. Soon they will starting meeting stronger teams in all competition. And its obvious that Liverpool will face Real Madrid, Manchester City after winning against Southampton. If they are able to win against this team then i know they are better than their last season. In the end they might end up wit a trophy.
Clubs such as Manchester United, AC Milan, Bologna, RB Leipzig, Chelsea, and Bayer Leverkusen are not small clubs. These teams have some of the best players and coaches and are also doing well in their various leagues. Liverpool is currently one of the best teams in Europe. Even Real Madrid and Manchester City are not in very good form now. City have lost straight four games while Real Madrid is behind Barcelona in La Liga. And Madrid is facing so many injury problems which has made Carlo Ancelotti have limited players to select from. I will bet on the Reds when they meet the two teams you think will defeat them.