Blurry upload to youtube

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I'm making a simple animation that I'm trying to upload to YouTube but YT always finds some way to compress the video and make it blurry. But the interesting thing is that it's only blurry during the part where there is motion. https://www.youtube.com/watch?v=8gaqbbPQWn4 This is the video. After about 5 seconds the quality adjusts and turns good again. Would appreciate any insight thank you!

[Rick Gerard · Accepted solution]

To get the best quality on YouTube, you must use the YouTube presets in Media Encoder, follow their guidelines, and wait for the video to be fully processed. The farther you are from the streaming service's recommendations, the worse your video will look. All of them, from Instagram to YouTube to Vimeo to Facebook, recompress your video to multiple streams and serve up the most efficient version depending on bandwidth. 

The video levels on the short sample are very low, and I see some color compression problems in the subtle gradients in the scene that are the result of the limitations of an 8-bit file format. If you have followed the recommendations and you are still having problems, I would suggest that you open your project using the Color workspace and check the levels. Everything looks awfully low to me. 

[Mylenium]

I concur with Rick. You need to set your mind to how MP4 compression works in general and YouTube in particular. There's simply a lot of problems with your footage. It's extremely murky and barely has any contrast, which would stretch the limits of what is technically possible even on a locally stored file with a high data rate and other optimizations. Throwing this up on YT can only make things worse when it recompressed your file to generate it's different streams. Sure, once it switches to a higher resolution version halfway through it may be acceptable, but you can't expect that to always be the case. Users on a slow mobile network will never get to see it. Therefore it would be best to work on the actual design to make it look good at lower resolutions. Increase the color fidelity, add noise and dithering to the background and so on. All the tricks that have been around the last two decades...

Mylenium