"There is blood on my arm."
Translation:Er zit bloed op mijn arm.
I do wonder why you use different words when you have the right word in Dutch anyway. Like the word 'is'. Perfectly good word that means the same in both languages. Very easy to remember, write, type and spell. And yet you have to change that for all sorts of words! It hurts my poor bwain. lol
No, it is not the correct verb. Judging from the sister language German, "liggen" may either apply to an object lying down (when it might also be vertical), or to something being geographically situated in a certain way. OTOH I would describe the idea with "zitten" here as of a liquid/viscous mass being attached to, sticking to, soaked into something.
It's not foolproof, but I tend to use staan when something is taller than it is broad ('De boeken staan netjes op de plank') and liggen when it's broader than it is tall ('Het boek ligt op tafel'). It doesn't work in all cases though - a car staat outside your house, unless there's been a really bad accident.
Try and think of it like this: The blood is not lying there as a cleanly separated sheet, ready to glide or peel off, is it? It might even be on the side or bottom of the arm. Whether it's on skin or clothing, it will have basically soaked into the surface. It "sits" nestled into the surface.