The Reds topped the table as recently as Christmas Day and remain just six points back from current leaders Arsenal, lying fourth behind Manchester City and Chelsea.
Before their clash with the Blues on December 29, Jose Mourinho suggested Liverpool's lack of involvement in European competition made them dangerous title rivals, and Suarez agrees.
|SUAREZ STATS IN ALL COMPETITIONS
"Obviously the intensity in the Champions League is difficult to handle [...] so we have to take advantage.
"I don't know if we have what it takes to be champions but we didn't deserve to lose either of the matches played recently against the top clubs.
"We lost at [Manchester City] and Chelsea but it's alright; we are playing well and are on the right track.
"We have shown we have the level to play in the Champions League. That is really important because, in the last two years, we haven't demonstrated that Liverpool can play there.
"Now we are playing very well, we have really good players and, if we continue at this level, we can do it."
Suarez has established himself as the outstanding player in England since his return from suspension for biting Branislav Ivanovic, scoring 22 goals in 18 matches for Liverpool in all competitions.
Equally impressive has been the improvement in temperament, and Suarez insists he has worked hard to bury his darker inclinations.
"I am trying hard and I have changed," he insisted. I don't want to create any controversy or anything - today all I am thinking about is Liverpool.
"I am more than happy with my life here and my wife and children are very happy as well. We are very content with our life. I'm happy to be in the Premier League which is the best league in the world. This is what matters to me.
"I am with a spectacular club that I've always wanted to play for. The team is playing well, I feel comfortable on the pitch despite what happens in other stadiums. I love playing here in England and that is the only thing I think about."