Cannot pass variable into while loop - bash

Question

I've tried this a few ways but trying to pass a variable into this code when it's a text file just doesn't work. What's weird though is if the check sees it's just a url, it works perfectly.
I've tried -i in wget, quotes around $line, {} around line, putting $directory a few ways into wget. Nothing. It either reads it as blank or as the file name, not the urls in the file.
On top of this mess, $savefile.log in the first part of the loop always returns directory.txt.log. Tried $line.log to fix that and nada. I do need it stripped as : and \ are not valid in a file name.
#!/bin/bash
read -p "Enter directory or .txt file: `echo $'\n> '`" directory
savefile=$(echo "${directory//"http://"}" | cut -d '/' -f1)
if [[ $directory == *.txt ]]
echo
echo "Spidering $directory"
while IFS='' read -r line || [[ -n "$line" ]]; do
echo "$line"
wget -np --spider -e robots=off --no-check-certificate $line 2>> $savefile.log
echo
echo "Spider saved to $savefile.log"
done < $directory
else
echo
echo "Spidering $directory"
wget -r -np --spider -e robots=off --no-check-certificate $directory 2>> $savefile.log
echo
echo "Spider saved to $savefile.log"
fi

Answer 1

EDITx2??:
Removing my old answer because it was wrong, finally got a chance to sit down and run the code, and based off what I THINK you were looking for this should do it:
#!/bin/bash
read -p "Enter directory or .txt file: `echo $'\n> '`" directory
if [[ $directory == *.txt ]]; then
echo
echo "Spidering $directory"
while IFS='' read -r line || [[ -n "$line" ]]; do
echo "$line"
savefile="$(basename "${directory//.txt}")"
wget -np --spider -e robots=off --no-check-certificate $line 2>> $savefile.log
echo
echo "Spider saved to $savefile.log"
done < $directory
else
echo
echo "Spidering $directory"
savefile=$(echo "${directory//"http://"}" | cut -d '/' -f1)
wget -r -np --spider -e robots=off --no-check-certificate $directory 2>> $savefile.log
echo
echo "Spider saved to $savefile.log"
fi
One big issue was you forgot the ; then at the end of the if [[ ... ]] line.
With savefile, I am guessing you were aiming to strip off extra after the ".com" on a url and give just the file name of a file? Works perfect for a url as written, but it nukes file path. Moved it into the else as written. For a file, basename removes the directories and just leaves the file name and the variable expansion strips the troublesome '.txt'.
Tried not to deviate from your code by much, but I would recommend quoting the variables - shouldn't be spaces in the URL, but ~could be~ if input wrong, but mainly because filenames could have un-escaped spaces.
Could also make a tad more compact by using 'echo -e "\nSpidering $directory"' instead of the double echoes. Don't suppose anything wrong with them but they bug my ocd. :P
Finally, I would recommend using the newer syntax for the command substitution, "$(echo "cmd")" instead of the backticks. Again not technically wrong, but since the back-ticks are deprecated they may eventually stop working. Also, and more so I'd say, it makes the code allot more readable, I have to squint at times to tell if it is a single quote or a back-tick.