Found two weird things while trying your demo:
First, something's up with the "origin" of the character you control: when facing down, the attack seems to come from it's feet, but when facing up, it comes from the head. This makes it hard to aim the attack.
Second, the hitbox seems to be set to be all of the character's body, instead of just the origin point which imho should be set at it's feet. Currently you can step into the bottom's blue tiles without an issue, but not so much into the upper ones because the head hit's the red tiles before you are able to step into the blue ones.
Aside from that it seems to work well, and I like the character sprite.