Is Google Analytics a big fat liar?

[apexis]

Is Google Analytics a big fat liar?
During the past few months our website has taken a dive in the SERPS. When looking at analytics it is clear that from the 20th June onwards, the site (according to Google Analytics) now only gets on average around 1 visitor every 5 days.
We didnt get a huge number of hits to begin with and our main keywords have gone from page 2-3 to page 7-10! With the drop occuring at the end of June would I be right in thinking it may not be Panda/Penguin?
Anyway, we have a live chat feature on the site which also gives us live stats on visitors and although the visitor numbers are down, we are getting more hits than what Goggle is suggesting.
So, is Google lying to me?