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I wouldn't be too certain about what you have just said. Real Madrid is not a club that usually loses several games just like the one against Barcelona. They often times show a strong reaction, which doesn't necessarily mean that they will win their next game guaranteed, but I don't think that Liverpool will beat them 4-0 or so. There is going to be far more resistance because whenever Real Madrid loses like that, their level of awareness in the following games rises sharply to the point that they do at least know how to not get destroyed once again. Liverpool is in great shape, but I don't think they will be pushing for a 3rd and a 4th goal if they take the lead. It's probably more about ball control and solid defense then.
I'm not saying Liverpool will beat Real Madrid exactly with a score of 4-0 like when Real Madrid lost in El Clasico, but I'm just considering that Liverpool could win even if Real Madrid is the favourite. However, this time Liverpool are the favorites based on the odds, so you definitely know which one you should choose if you want to bet.
Liverpool are in good form so far, while Real Madrid is unstable. Real Madrid dropped a lot of points in the Champions League so far and I don't think they will easily win against Liverpool. If I had to choose, then I would have to choose not to bet on this match and just watch it. That's because I doubt that either one will win.