Deffo a really good start, great likeness, it's clear you know how to draw.
Tho the aa on the outside makes no sense in a sprite (unless he would be on a much brighter background all the time).
You also have lots of unnecessary colours I think. Some colours can be merged. And another problem is clarity. In small sprites like this you sometimes need to put harsh colours next to another to make stuff pop, so you do not get a muddled mess of close colours.
Anyway, I made an edit bringing it down to 16 colours, from 31 in your version (including transparency)
Kratos is pretty greyish, so I thought, hey why not kinda intersect the sword and skin palettes, they are still seperated a bit but cross over.
This saved TONS of colours, also I used one of the greys for the eyes, which you had as an extra colour. Then you had that orange on the legcloth, which is pretty much wasted. So to fix that I made the red where the light hits the head brighter and more orangey, so now this can be used for both.
Did some other stuff like this which you should be able to spot when you look and compare them.
I also edited some stuff like aa in places, and also simplified the area under the chest where there would be less light and so made his head pop a bit more and give it more depth.
Hope this helps.
