[c] Going through a text file line by line in C

To read a line from a file, you should use the fgets function: It reads a string from the specified file up to either a newline character or EOF.

The use of sscanf in your code would not work at all, as you use filename as your format string for reading from line into a constant string literal %s.

The reason for SEGV is that you write into the non-allocated memory pointed to by line.