There are cleaner ways to do it, but what you're looking for is this.
#!/bin/bash
x=5
y=`wc -l $1`
y=`echo $y | cut -f1 -d\ `
while [ "$y" -gt "$x" ]
do
sed -n "${x}p" "$1"
x=$(( $x + 5 ))
done
Initialize x to 5, since there is no "line zero" in your file $1.
Also, wc -l $1 will display the number of line counts, followed by the name of the file. Use cut to strip the file name out and keep just the first word.
In conditionals, a value of zero can be interpreted as "true" in Bash.
You should not have space between your $x and your p in your sed command. You can put them right next to each other using curly braces.