Ahead of Wednesday's Copa del Rey semi-final first leg, Ancelotti has also insisted that Atletico are among the favourites for all three major competitions this season.
"Atletico are a very strong team. I like their organisation and they play very well on the counter-attack. It's all going well for them," Ancelotti told reporters.
"[Diego] Simeone doesn't believe his team aren't title contenders, he's only saying that to take the pressure off.
"He is doing a fantastic job. They didn't start the season as favourites but now they are right up there in the league, in the semi-finals of the cup and in the Last 16 of the Champions League."
The second semi-final in the Copa del Rey will be contested between Barcelona and Real Sociedad.