Although the question seems similar to this one HERE, but what I want to ask about is little bit different.
Assume we have a signal $X$ whose length is $N$x$1$, we convert that signal into time domain using bit reversed order FFT as: $x = F^{'b}X = p*F'*X$ , where $F^{'b}$ is the inversed bit-reversed order FFT matrix ($F^{b}$). $p$ is row permucation matrix and $F'$ is the inversed DFT matrix.
A cyclic prefix is added into the signal $x$ having $x_{cp} = [cp; x]$. Then that signal is transmitted over a frequency selective channel $h$ resulting $y_{cp} = h*x_{cp}$ where $*$ denotes to the circular convolution operation.
The CP is first removed from the signal $y_{cp}$ resulting the signal $y$.
Based on my analysis, when transforming the signal $y$ into frequency domain using $F^{b}$, as following $Y = F^{b}y = p'*F*y$, the channel is diagonalized where I can get the channel $h = F^{'b}(Y./X)$ it means in that case I use the whole signal $X$ as pilots.
The problem I am facing, when using such pilots from $X$, let's be $X_{1:4:end}$, and then perform the same steps, the results of $h = F_2^{'b}(Y_{1:4:end} ./ X_{1:4:end})$ is not equivalent to the channel !! where $F_2^{'b}$ is similar to $F^{'b}$ but with size similar to $(Y_{1:4:end}/X_{1:4:end})$ and $./$ is element wise division.
$NP$: When performing these steps with the normal $FFT$ matrix, everything is working well and I can recover the exact channel using the pilots data.