SeDiceBisonte: Thanks for all the tips! Yeah, I think I went too far with the proportions. I added some shading and your suggestions, but I'll probably have to go back to that whole arm.

Rydin: Thanks! Yeah, I wanted to draw a character whose gender is ambiguous. But I might crop out her bottom half anyways.

It's difficult to explain why but The very first thing my eyes do when I see the reference photo is this:t

This may give you insight on your piece.

To do this properly, you will have to redraw most pixels each frame. It will be lots of work that nobody else will do for you. Welcome to the discipline of pixel art. Stay focused on your vision and you can crush each frame! 

Anatomy-wise, the only thing I notice is she has a boney butt.

Sounds cool, where can I find more information?
I used to play Suikoden a lot as a boy. Good times.