But he hopes Alex McLeish's side can take advantage of Liverpool's current plight which sees them missing injured skipper Steven Gerrard and having striker Fernando Torres only half fit.
Dann, signed from Coventry during the close season, said: "I think this is just a blip for Liverpool. I think they've won only one out of eight and they've got too many good players to be losing that many games.
"They're missing the big players and, when you miss your better players, then you won't get as many results.
"In a way, it gives you a lift, knowing that they've got quite a few players out, and knowing that you've got more chance of getting a result.
"But the longer that their poor run goes on, then they'll be trying extra hard to turn it around. It can work both ways but we've just got to stick to our own game.
"I think they'll start picking up soon - but hopefully it's after our game with them."
Twenty-two-year-old Dann has only played at Anfield once before - in a schoolboy game - and is relishing playing there in front of a full house as Blues look to build on their impressive draw with Manchester City.
He said: "I'm enjoying every game but this one will obviously be special having grown up in Liverpool and supported Liverpool as a lad.
"My dad used to take me until I started playing football myself of a weekend. We used to sit on the Kop. It was always a good atmosphere and I always said that I wanted to play there.
"I've worked hard to get where I am now and these are the rewards for all the hard work that I've put in. I can't wait to go there and I'll probably know most people in the ground. I can't wait for it.
Dann believes Birmingham are starting to pick up the results their general performances have deserved this season with the win over Sunderland followed by the share of the spoils against Mark Hughes' side.
He said: "In the last two games, we've put in two good performances and picked up points and we deserved to beat Manchester City.
"We've shown what we are capable of, not just in the last two games but in previous games where we haven't got the results or points that we deserved.
"We've just got to keep that confidence up and hopefully show what we can do at Anfield."
McLeish admits he faces a dilemma in terms of who to pick in goal after Maik Taylor's impressive performance when deputising for on-loan Joe Hart who was ineligible to face his parent club Manchester City.
He said: "It is a tough decision but managers have to make tough decisions and I've made plenty of tough ones before. At the end of the day I make the decision which is in the best interests of the club.
"Do I know who will play? I'll leave it until later. It is a dilemma. We are still talking about the pros and the cons of both.
"But one thing I don't want to do is get jittery about my decision-making in picking a keeper.
"If you start analysing every single mistake a keeper makes you could be chopping and changing every week.
"I know two years ago there were three keepers here and the three of them (Maik Taylor, Richard Kingson, Colin Doyle) all played within three weeks of each other.
"I don't want a situation developing like that."