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Regardless of the performance of both teams lately, one team is in its best form and the other is in a slump, but what is certain is that the Liverpool vs Man City match at Anfield will be a big match this week and this match will also most likely determine the Premier League title this season. The reason is, Liverpool is currently solid at the top of the standings with an 8-point difference over Man City, so this victory is important to continue to advance. On the other hand, Man City needs a victory to reduce the points difference and revive their chances of winning the EPL.
If Man City wins this match, of course this will be their turning point this season to catch up with Liverpool. So if Liverpool must win if they want to become EPL champions this season, Liverpool must be able to take advantage of opportunities when Man City's performance is faltering, Arsenal is inconsistent, Chelsea is up and down, Spurs are declining.
After a number of games without a win, I think Manchester City will find a way to get a win. The match against Liverpool will obviously be difficult to win, but I don't think it's impossible. So it's true as you said, if Manchester City wins then it will be a turning point for Manchester City to get its performance back. But if Manchester City loses, it is very likely that Liverpool will win the title at the end of the season.
Liverpool on the one hand has home advantage which will make them favorites to win. Not only that, the different performances of the two also become a benchmark for analyzing the match. Liverpool has a high probability of winning, but I think it's still not certain that they will win.