The Light Blues only trail Celtic by goal difference at the top of the table after their 1-0 victory at Ibrox before the winter break.
And Arfield knows Rangers must now harness the feelgood factor and look to build some serious momentum in the second half of the season.
He said: “I think the belief has always been there, but it can take a result like that for it to get into everybody and for the fans to believe.
“For us in the dressing room, the belief has always been there and we want to be successful as soon as possible. It does amplify it when you get a result like that and it was a comfortable victory in the end.
“I think the European run, nobody expected us to go as far as that. There were a lot of games there and we took huge momentum from those games, like going to Ufa and getting through and the result in Villarreal. Things gather momentum, we grow as a team and results like Celtic only help.
“I have done it at Burnley and the biggest thing was exactly that. You weren’t always pretty on the eye at times but it was momentum, grinding out games and just being able to win games. We have got two unbelievable names into the building so we have got the quality to win games.”
Ryan Jack netted the only goal of the game against Brendan Rodgers’ side and sparked scenes of emotion and wild celebration amongst the Ibrox crowd.
Arfield has seen Rangers suffer a series of damaging derby blows in recent years and is pleased to finally have ended supporters’ long wait for an Old Firm victory.
He said: “I used to watch them all the time, I never missed one. It is different watching it to when you are playing in it. You never really see it how you are playing in it, it is difficult to describe.
“Of course, there has been a gulf in class over the last years, the results tell you that and you don’t need to watch the performances. I have watched every one of them and thankfully we have got the bragging rights until the next one
“When I walked through those doors to sign that contract, this is the game that you are naturally drawn to and the game you want to win as much as possible. Now we have done it.
“I had the opportunity to walk off the pitch having given that to the fans and that result was for all of them that have stuck with the club through thick and thin. Hopefully it is the start of good times.”