Your black outlines: bad. They aren't doing any justice to establishing the shape of this guy. It's only adding useless information to your already cramped pixel zone, you know what I mean?
Your black color range isn't helping either. The colors are ramping too gradually and too subtly. You have 5 different black hues but zoomed out I only really see 3. You can get more out of each precious color by hue shifting and having more contrast between each color. I mean, I'm simplifying this a bit. I understand you need to try to capture the texture of the fabric, but you've got to try to balance that with limited pixel resources.