"When it's a game every three, four days we are in rhythm, incredible focus, it helps us," Guardiola said on Friday.
Manchester City host Leicester City on Saturday, sandwiched between the first and second legs of their Champions League semi-final with Bayern Munich, a stretch of three games in eight days.
Guardiola's team are chasing a less busy Arsenal in the Premier League title race, and the Spaniard said one more loss this season and they won't retain their crown.
"Everyone knows if we lose those games we will not win the title," the Spaniard said. "That is why our intentions and details are higher. It is the same (Saturday), if we lose the game we will not be champions.
"If we win, we could be still there, because we cannot forget, we are six points behind Arsenal, a team that dropped few, few points during the season and playing one game a week, with a lot of time for recovery, analyse and prepare for games."
Manchester City are unbeaten in 13 matches in all competitions and had no trouble dismantling Bayern Munich in a dominant 3-0 win on Tuesday, to continue their quest for their first Champions League crown.
Asked if his team's past success can impact them over the crucial next few weeks, Guardiola said his players understand the gravity of every moment.
"The only impact I believe is the fact that everyone knows, in their complete body from the top to the bottom, that if we lose it is over," he said.
"It is the best way to compete because in every action and set pieces, the players... feel it in that action, that we need to win it, otherwise we are going to lose the game.
"This is when you have the best. The reality is we are six points behind, no guarantee we will win the games in hand."
Arsenal were held to a 2-2 draw by Liverpool last weekend, giving Manchester City, who have also played one fewer game than the Gunners, a window to narrow the gap and set up what should be a thriller at the Etihad Stadium when the league leaders visit on April 26th.
Leicester City, meanwhile, are in the relegation zone in 19th place, but just two points behind Everton in 17th.
Arsenal play West Ham United on Sunday.
