The La Liga giants are reeling after back-to-back home losses against Barcelona and AC Milan but the coach can see a path through the trouble for his team.
Ancelotti said ahead of Madrid's game against Osasuna on Saturday (09.11.24): "It's a difficult time for everyone.
"We have evaluated the situation with the players. We think we have found the solution. But we need to put that into practice. That is what we are hoping to do, to play differently."
The Italian manager has also called for his players to step up and be counted.
He said: "It's about sacrifice, focus and team work. That's nothing new.
"We have to be a tight unit and that takes sacrifice, focus to choose the right pass. If you play as a team, you defend as a team and we did that brilliantly last season."
Madrid have slipped off the pace in both La Liga and the Champions League but Ancelotti is convinced that the club can still be successful this season.
He said: "We are not accustomed because things have gone perfectly well for a long time. Now it's a difficult time and we accept this moment but we can't give up.
"I'm happy to be at this club because it's the best club in the world to bounce back even stronger. This is a healthy, strong, motivated group.
"We are in the best club in the world to try to come out of this difficult situation. We are all in the same boat, the players, the club, me. We are united more than ever.
"Despite the issues we are having, I believe this season can be successful. We will fight for every title in every competition. That's how I see it and that's how it will be."