The 54-year-old Italian has heaped praise on the blossoming of two of his prized assets, who together dismantled Unai Emery's men at the Santiago Bernabeu
The duo were in scintillating form as Los Blancos thumped Unai Emery's men at the Santiago Bernabeu, with the Welshman bagging two goals and two assists in the rout, while his Portuguese team-mate hit a clinical hat-trick.
And Ancelotti is enthused about the understanding the pair are already seemingly forging together.
He told Marca: "We played really well. There were moments when we lost some concentration but the game was good. We need a little more balance. It was a crazy game. We started very well, but lost some balance."
"Bale played very well, showing great fitness, scoring two goals and forming a good understanding with Cristiano."
Xabi Alonso made his long-awaited return to first-team action following a five-month lay-off from a groin injury, replacing Asier Illarramendi on 64 minutes, and the Italian coach says the midfielder will be eased back into the fray.
He added: "We will need to give Xabi Alonso minutes little by little. He has trained very well."
Alonso himself said he was delighted to be back in action, and is hoping get rid of any early-season rustiness.
"I'm very happy. I have no problems and I hope to slowly get there to be able to help the team," the holding midfielder was quoted as saying on the official Madrid website.
"I feel like the team is taking shape but there are still things to polish. By reinforcing what we do well and correcting what we can do better, we hope to go as far as we want to."
On Bale's performance, Alonso feels the Wales international will only get better once he is fully adapted to life in La Liga.
"Bale's quality is clear for all of us to see and he will only further improve once he's settled in completely," he said.
"He needs a period of adjustment to La Liga because it is very different to the Premier League. Plus we also need time to get used to him and vice versa."
The Spain international also briefly discussed Cristiano Ronaldo's celebration after his first goal as the attacker saluted the crowd in the wake of Fifa president Sepp Blatter's recent comments that the 28-year-old acts like a commander.
Alonso added: "He is right to take the situation with humour."