The former Netherlands boss takes his side to Anfield in their Europa League clash with the Reds after enjoying a solid start to their campaign, taking four points from their opening two games.
Hiddink recalls when he was Chelsea boss towards the end of the 2008-09 season, where Liverpool were challenging for the Premier League title but ultimately finished second to Manchester United.
He told reporters: "Of course, at that time they had different players and were more leading in the Premier League."
The 65-year-old believes that despite the tough start to the season the Reds have suffered under new boss Brendan Rodgers, he is confident the club will return to their days of dominance in England's top-flight sooner rather than later.
He added: "This season they have had a problematic start, but this is a huge institution - it will always recover. Liverpool will always resurrect and come up to the top, where they belong."
Liverpool are currently third in Group A on three points after beating Young Boys in their opening game, but then suffered a 3-2 defeat to Udinese last time out in the Europa League.