Balotelli was dismissed in the 83rd minute after picking up a second booking for a challenge on Martin Skrtel, much to the anger of City manager Roberto Mancini, who accused the Liverpool players of influencing referee Martin Atkinson.
But Dalglish believes Balotelli should take more responsibility for his actions, saying: “I think Balotelli got himself sent off. Sometimes if you look in the mirror, you get the answer.
“He doesn't help himself. If you help yourself, you don't get in that situation in the first place.”
Liverpool fell behind to Vincent Kompany's header in the 31st minute but levelled two minutes later when Joleon Lescott scored an own goal as he tried to block a Charlie Adam shot.
The Reds applied late pressure but could not find a way past Joe Hart, who produced a stunning diving save in added time to keep out Andy Carroll's powerful header.
Dalglish felt his team deserved to pick up all three points and lamented their lack of fortune in front of goal.
“The performance was fantastic but I don’t think the players got what they fully deserved,” added the Liverpool boss.
“I think we deserved the three points and quite easily could have won it, but we never managed to.
“We got a fortunate goal but I think that is when our luck ran out. We have played against three or four goalkeepers who have played like that against us this season. Hopefully one day that will change.
“Manchester City started better than us but once we got into it, I think we were the better team.
“I don't think we could have asked for much more from the players. They were fantastic in the way they went about their job.
“I think the attitude and commitment has been superb almost since the day I came in. That is no surprise, but we also need to remember this team is in its infancy a little bit as well, so they are doing well.”
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