The Blues opened up a four point gap over Manchester United at the top of the table following Tuesday night's 1-0 win over Bolton and with just four games remaining Ancelotti's men are now firmly in the box seat.
The Italian admits that his side are now favourites to lift the title but is warning his players against complacency as he knows it is not in the bag just yet.
"Now the Premier League is in our hands and we have to stay focused and calm," said Ancelotti. "We have to play game by game, and we are not interested in the results of the other teams.
"There was pressure on us to get this result because we needed to improve our position, but I think the players now have very good motivation to arrive well to the end of the season.
"We had 21 shots, so we deserved to win. There's no debate about this. It was difficult because, when you're 1-0 up, you have to be careful right to the end. For me, it was a very good performance.
"Now we have more possibility to win the title than, with respect, Manchester United and Arsenal, but we are not sure yet. We have to play four tough games and we know that we have to fight again. But we're ready to fight."