Patrick Vieira felt his team did not compete well enough in their loss at St. James’ Park.
Newcastle made it six wins in a row at home, with Miguel Almiron scoring the game’s sole goal.
Eddie Howe’s side now has 40 points, putting them within striking distance of the Premier League’s top half.
With a 15-point deficit to 18th-placed Burnley, the Newcastle are closer to the top ten than the bottom three.
The Crystal Palace manager praised Newcastle’s recent form and the support they received at St. James’ Park.
He told Football London: “They’re in a really good period winning games and that gives confidence and belief and the fans following behind. So we knew that it’d be a tough place to come.
“But I was expecting us to compete a little bit more, especially in the first half an hour. And when we conceded the goal it became difficult to get back into it.”
“I think we responded well [to going behind],” said Vieira. “In the second half, I was very pleased with the way we wanted to compete against them. I was happy with that.
“But we need to do it from the first half an hour, from the first minute of the game we have to compete better. The way we entered the game gave them confidence and belief. We didn’t compete well enough in the first half an hour.”