It's really hard to critique this stuff what with all the non pixel-art effects you have stacked on top of it. Mostly, though, I hope you know what banding is because there's quite a bit of it on the player sprite as far as I can see. That's not all. It's in a lot of places really. A few of the sprites aren't readable as well, such as the caped/winged demons
(?) running throughout the fire-dungeon.
Also, about the "butane torch" thing, that's not really how it looks. Note that the whole thing isn't
actually straight, rounding off at the end. I think that gives me the impression it's like a laser. It's more like a very long ellipse with most of the "light" of the flame at the center/source of the torch. Since you have transparency with all your fancy-schmancy newfangled tools and I don't... I'll just make a basic silhouette to give you an idea.
(Yours on the left, mine on the right. Yeah... Sorry if I over-anti-aliased, but I guess it's to convey amounts of transparency. And it's at least it's a bit better, no?)
However I'm fairly sure those things (butane torches) are pretty small, and unless your knight is about the size and/or height of one of those little plastic figures on top of my PC tower and you're doing this for a sense of scale, I recommend leaning towards the traditional flamethrower look.