Goals from Sadio Mane, Roberto Firmino and Mohamed Salah looked set to lead Jurgen Klopp's charges to victory against the Hornets, but Liverpool's defensive deficiencies came back to haunt them once again as Miguel Britos smashed home a stoppage time leveller for Marco Silva's side.
Liverpool will now target their first Premier League win of the season against the Eagles. Klopp's charges are as short as 4/11 (1.36) to achieve that objective.
Palace will certainly be hoping for much better this weekend, for Frank de Boer's debut as a Premier League manager could barely have been worse as the Eagles suffered a humiliating 3-0 home defeat at the hands of newly promoted Huddersfield Town. The south London side, too, will miss Wilfried Zaha, with the England midfielder set to sit out due to an injury sustained against the Terriers.
Palace, though, will have fond memories of this fixture, for they have picked up maximum points in each of their last three visits to Anfield in the Premier League. There is 15/2 (8.50) that the Eagles enjoy a fourth successive Premier League away win against the Reds and 4/1 (5.0) that Klopp's outfit are again forced to settle for a share of the spoils.
Both sides will likely place an emphasis on attacking football and, so, there is plenty of potential for an exciting, entertaining encounter when the rivalry is renewed on Merseyside this weekend.
There have been goals at both ends in each of the last 10 competitive matches between these two sides with 17/20 (1.85) that the trend continues here, and 4/7 (1.57) that there are more than two goals scored - a selection that would have seen punters profit from 11 of the last 12 competitive fixtures that these teams have contested.
Liverpool were 2-0 winners when these rivals met in the Premier League Trophy in pre-season and there is 11/2 (6.5) that Klopp's men repeat that scoreline here, with 5/4 (2.25) that fewer than three goals are scored in this game.
That fixture, though, is unlikely to have much bearing on Saturday's showdown and, with both sides looking vulnerable at the back in their respective opening matches of the league campaign, a goal-laden contest seems likely here.
It is, therefore, the 11/8 (2.38) for at least four goals to be scored that could offer best value for punters ahead of Saturday's meeting on Merseyside.