It's definitely possible to go bold in a small room, in fact I think smaller rooms are the best place for it :)
There is so much you can do with the blue colour (I've imagined it as a deep teal?). It will look amazing with crisp white, off white, beige, pale grey and more taupe greys - pretty much any neutral will work, just depends whether you want a fresh and clean look or something warmer and more traditional.
Here are some random pics that might give you inspiration for colour...
Q
