I really liked the visual style, effects, setting, and music!
I did feel like there was a lot of balance needed to make the combat interesting, that first enemy, like others are saying, is way too hard, and the subsequent ones end up being too easy.
I also didn't like the way the sanity mechanic is implemented at all. The visual effect that was associated with it was really cool, but it essentially served as a timer that never stopped (even when opening my inventory or map). That made things especially annoying considering the result of the time sanity timer running out was just a game over. Maybe next time, consider implementing this in some way that it doesn't result directly in a game over, maybe a temporary difficulty spike or damage penalty, something like that. Not sure if you are familiar with Darkest Dungeon, but the first one does a good job of handling this kind of mechanic without making it necessarily fatal.
Good jam submission though, also, extra points for the CRT shader option! :)