A screamer from Didier Drogba and goals for Florent Malouda, Nicolas Anelka and Ramires brought the champions to within seven points of Manchester United, although the leaders travel to Blackpool to play their game in hand on Tuesday.
United still have to play Chelsea twice though, and skipper Terry is adamant the Blues could fight their way back into contention.
"In the past we've never given up," Terry told Sky Sports after the match. "Manchester United are playing well at the moment and getting the right results, maybe getting a bit of luck too. But things can change and if we can win both games against them we'll be right back in it."
Terry continued: "Away from home, at times we have shown very good form this season but tonight everything went really well for us. Didier got us off to good start with probably the best goal of this season so far and we worked really hard all over the park. We stopped Bolton playing and it worked for us."
Drogba, whose goal was a long-range swerving effort which flew over Bolton goalkeeper Jussi Jaskelainen, said of the title race: "I think it would be the best achievement in my six years here - but we have to think of the next game. It's good we are playing Manchester United twice - but we will have to win all our games and see what happens."
Chelsea manager Carlo Ancelotti admitted the result has first and foremostly relieve the pressure on him, but he too held belief that an unlikely fightback was now possible.
"I feel more secure,'' he said. "When you can move on from this moment you are stronger. The most important thing is to maintain composure and stay focussed. We won an important game but we will have other important games in the future. But at least we know the path we have to follow.
"That is the end of the bad moment. It was an important performance and now we have to look forward with confidence. To close the gap is not going to be easy. At this moment Manchester United are so far in front. But step by step, we can do it, although obviously we have to win the games against them.''
And on a proposed deal for Benfica's David Luiz, he said: "It is not done. We are trying to find an agreement with Benfica but nothing is decided. We just have to wait and see.''