An early goal from Spurs made Liverpool pay for their slow start as they eventually lost 2-0, a result which takes the battle for fifth place to the final day of the season.
"I think they started better than we did, scored a goal and we didn't start to play for 25-30 minutes," said Dalglish.
"We started to look a bit better, but then at the start of the second half they got the second goal and that gave them a real foothold in the game.
"It was difficult for us to break them down. We didn't have enough on the day to break them down and penetrate their goal, but I don't think Pepe was overly busy either.
"We never played as well as we can play and that's a disappointment for the players because it would have been a fitting way for them to finish the last game of the season at Anfield for the efforts they've put in since January. But maybe it was too much of a fairytale.
"We're disappointed we never got the result because it would have been a fitting way to end."