Arteta says he likes his side's reaction after their 2-2 draw against London rivals Crystal Palace in the Premier League on Monday.
Arsenal came into the game with a run of six games without tasting defeat in all competitions while the visitors were on three winless run.
The hosts started the game brightly and got a deserved lead through Thomas Partey in the opening 23 minutes.
Alexandre Lacazette was brought down inside the area and referee Craig Pawson with the help of VAR called for a penalty.
Striker Pierre-Emerick Aubameyang stepped up to take it and his initial effort was saved by Emiliano Martinez but he tucked home the rebound to make it two for Arsenal on the cusp of halftime.
Youngster Emile Smith Rowe extended Arsenal’s lead eleven minutes after the break before Jacob Ramsey pulled one back for Dean Smith’s side but it was not enough to inspire any potential comeback.
Arteta said after the game: “It was very close to it [Arsenal at their best]. What I liked the most was the way the team reacted to Monday evening. We accepted it wasn't good enough. We're the youngest team in the league but that's not an excuse. We can't change the age. We have to bring the belief they can play at this level because they can.
"It was a penalty for me. VAR didn't give us anything against Palace and I thought it was a penalty, irrespective of the time.
"It's nice to be back in the top half. We've had a tough start and today I'm really satisfied with the performance and the result."
