The former two-weight world champion came to the defence of the Mexican superstar after he suffered a shock upset at the hands of the Russian on Saturday night.
And the British boxing legend also said there’s nothing wrong with daring to be great.
Canelo Alvarez may have come up short on this occasion but Hatton insists he can still take away some positives from the second defeat of his career.
Writing in his Metro column, Hatton said: “We all witnessed a major shock last week with Dmitry Bivol putting in an excellent performance to beat Saul ‘Canelo’ Alvarez in Las Vegas.
“Russian fighters are so technically sound, very good defensively from amateur level to the professional ranks, from Kostya Tszyu to Bivol.
“They have always been superb at judging the distance, they make very few mistakes and are very methodical.
“Canelo is such a brilliantly versatile fighter but he just couldn’t find the target. Bivol did it with ease and made him work all night.
“Bivol’s left jab was great throughout the fight, Canelo has so many strings to his bow but he was not able to figure his opponent out.
“Rather than giving Canelo an ear bashing over his performance, you have to give all the credit to Bivol.
“Canelo made the move up to light-heavyweight a couple of years ago and we saw him handle that the first time around against Sergey Kovalev.
“But the way Bivol judged the distance and judged the pace of the fight, I have never seen someone deal with him [Canelo] so well since Floyd Mayweather.
“Let’s have it right, going down the home straight of a fight is where Canelo puts his foot down and that was the difference in the wins against Billy Joe Saunders and Caleb Plant last year.
“But this time around, he was lost. He didn’t have a plan and he had completely lost his zip, those stinging punches he usually throws.
“Of course, the weight of the shots coming back at him will have had something to do with it, fighting against the naturally bigger man.
“We need to give Canelo a break here. He dared to dream, dared to be great. But we have to give credit to Bivol, his gameplan was perfect.
“Canelo has the charisma, the flair, the defence, everything needed to win a fight. But he just wasn’t able to do anything special. And for the first time since the Mayweather fight almost a decade ago, he was made look normal.
“The decision on the night was not in doubt but Canelo wasn’t overpowered in there either, he didn’t take any heavy shots so I think he will be desperate to put that right in a rematch.
“He has cleaned up below at super-middleweight, there are no more challenges left for him there – once you reach the top of the mountain like he has done, there isn’t much point going back especially when there is no one really there to touch him. If Canelo is the fighter I believe him to be, he will want to do it again.
“It reminds me of the situation with Oleksandr Usyk and Anthony Joshua. In their first fight, AJ clearly lost but he didn’t take a drilling, he wasn’t put down by heavy shots. People believe that if AJ can apply new tactics in the rematch he will have a lot more success and Canelo might be thinking he can maybe do the same.
“He didn’t get a good hiding in there and that will encourage him. I’m sure he is thinking there are things he can do differently and he will certainly want another charge at that light-heavyweight title. You never want to go back over old ground.
“He will think in the back of his mind he will get the beating of him.”