The Reds’ 2-2 draw at Ludogorets on Wednesday night left Brendan Rodgers’ men needing a victory over their Swiss opponents in their final group game to book their place in the knockout phase.
Basel will progress at Liverpool’s expense if they avoid defeat at Anfield next month.
And speaking after Real Madrid’s 1-0 win at St Jakob Park on Wednesday, Ancelotti feels that the Swiss side are in the driving seat.
“I think Basel are currently better than Liverpool,” said Ancelotti. “I see a small advantage for Basel for the last round.”
He continued: “We did not play as we usually do. We defended well, we concentrated well and the most important thing was the victory.
“But Basel played with a lot of heart. They showed an intense game and were able to put us under pressure in the second half.”
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