iMac not giving option to log in with Apple Watch anymore

I have a 27" 2017 iMac and an Apple Watch Series 3, I noticed today that it's not letting me log into my account using my watch and automatically unlocking my computer anymore. It used to just log me in and my watch would make the tone that it unlocked and I could get into my computer. Now when I click on my account, it just makes me type in my password and doesn't even give me the option. When I restart the computer, I get a message stating that "Mac requires password to unlock using watch after restart". Then later when I go to log back in, it simply just asks for my password again. I have restarted my phone, watch, and computer. Is there something that I'm missing or something else I can do to make it work? My watch, phone, and iMac are all updated with the most current versions of OS. It was working a couple of days ago and all the sudden it is no longer working.