Liverpool remain in fourth position on goals scored having played a game more than Newcastle, and Gerard Houllier firmly believes a Champions League place can still be won.
Houllier said: "We missed a good opportunity to build a lead in fourth place. It was down to us and we didn't play well. We only started playing when we were 1-0 down.
"Fourth place is still open and there are four or five teams competing for it. It would be a mistake to throw in the towel and we are still in there. Newcastle have still to go to Aston Villa and we will need some help elsewhere. Newcastle still have four away games.
"It is not finished. Some will say it is over but it certainly isn't and the race for fourth place is still on.
"We had numerous corners, free-kicks around the box but didn't take the advantage. We had many half chances, Stevie had a chance when he was clean through and Vladi had a header saved by the keeper.
"A draw would have been a fair result and Charlton rode their luck at times. We only have ourselves to blame although I wasn't happy with their goal. It wasn't a corner and I think the referee evened it up when he didn't give them a penalty.
"It is a disappointing result and a very disappointing performance and we know we can do better. Maybe the Arsenal game took a lot out of us.
"We didn't hurt Charlton enough and whether Stevie should have a penalty I don't know as I didn't see it, as Phil Thompson was in my view.
"In fairness they had a shout for a penalty with a push before they scored but we had one turned down this season in similar circumstances when Duncan Ferguson pulled down Sami Hyypia. You don't get penalties for that it seems."