But the England centre-back said the Blues need to play it quick if they want to stay in the thick of it at the top of the Premier League.
And he warned the rest of the league to watch out once Chelsea really start to click.
The Blues beat Liverpool 2-1 on Sunday to stay third in the table – two points behind leaders Arsenal.
Boss Jose Mourinho has played down the prospects of repeating his feat from 2004-05 and bagging the title in his first season back as Blues boss.
“The gaffer has touched on that, but it is a bit of a transitional period,” said Cahill.
“But at the same time we have the quality to be competing in the league, FA Cup and Champions League.
“At the minute we are in touching distance of the other teams. It’s going to be entertaining and will go to the wire, but as long as we stay in there we are in with a shout.
“I was reading a lot of negative things about the team leading up to the Arsenal game, but if we had won at the Emirates we’d have gone top.
“We should look at that as a positive. When we do click we can expect good things.”
Chelsea picked up seven points in six days with the draw at Arsenal and home wins over Swansea and Liverpool.
But Cahill reckons the victory over Brendan Rodgers’ team was the best performance since the return of ‘The Special One’.
He believes the secret of their success was that they played with more intensity. He added: “We played better against Liverpool than the last couple of games because we played at a higher tempo.
“We looked really lively and the first half was the best we have played this season.
“We were creating and I think the tempo was faster which suits us. When it’s slow, it’s not good for us.“we have the quality to be competing in the league”Gary Cahill
“It was a massive result because we saw Arsenal had won at Newcastle before and the results of the teams around us on Saturday. That put added pressure on us.”
Mourinho’s men have performed against all the bigger teams, earning points at Manchester United and Arsenal and beating Manchester City and Liverpool at home.
“In the big games this season we have turned up,” added Cahill. “The focus now is to turn up every week.
“Certain games, like this Liverpool one, can determine whether you win or lose the title.
‘‘For whatever reason we do tend to get results and put in performances against the big teams this season.”
Cahill and fellow defender John Terry performed superbly to shut out Liverpool’s star striker Luis Suarez, but the driving force behind their win was Belgium ace Eden Hazard.
And his performance left team-mate David Luiz drooling.
“Eden had a great game and with players like him in the team we can see amazing football,” said the Brazilian.
“He is one of the quickest players in the world.”