is the ipod touch 4th gen case compatible with 5th gen

Yes. The color of the iPOd nor the price nor the initial iOS effect which case fits.

I don't think there is a 5th gen iPod Touch. But it will probably be the same dimensions as the iPod Touch 4th Gen.

There is not a 5th generation. If you're talking about the brand new one that came out around a week ago, that also counts as a 4th generation. I have the white one.😀

*ahem* That is not a new iPod touch. The price was only lowered because of the iPhone 4S and iOS 5. It's the exact same thing Apple has been selling since the iPod 4th gen came out. No 4.5 or 5's about it.