The Reds put up a spirited fight in the second leg of their quarter final, as they were 3-1 down from the first leg in Madrid.
However, they did not take any of the chances that fell their way, and drew the game 0-0 to crash out of the competition.
Klopp told BT Sport: "That's how it is. We know how many times Mo Salah would finish these type of things; with closed eyes. But in this moment, not.
"There were a lot of situations. Second half, after 60 minutes, they took a bit of control. They had more of the ball.
"We made the changes and timing maybe wasn't right.
"We didn't come through that well. We lost a bit of rhythm. Tried a bit too hard.
"Tonight it was absolutely OK but we are out anyway."