PWInsider.com is reporting that Daniel Bryan is indeed out of the WWE Championship picture. This past Monday on Raw showed WWE hit the "reset" button on many storylines and Bryan is one of the guys that will be in for a change.
There has been discussions of having Bryan back in the WWE Championship picture heading into WrestleMania, but he will be involved with The Wyatt Family and CM Punk for the forseeable future. WWE feels that they made Daniel Bryan a star over the past few months, showing that he can hang with top superstars in the company. The idea is that, if WWE wants, they could put Bryan back into the storyline with The Authority, Stephanie McMahon and Triple H.
As for the WWE Championship, it looks like Big Show is next in line for Randy Orton.