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Plaza de Cánovas del Castillo was the place to go ten years ago. Although its popularity has tailed off a little in favour of El Barrio Carmen and Juan Llorens, it's still worth a visit. Looking towards the riverbed, the bars on the right hand side of the square have tended to attract the younger crowd. Two very long established bars are Plaza and Década Loca.
The student set tends to congregate around Plaza de Xúquer. Being a little old in the tooth, I can't actually recommend any particular bars in this area!
In the summer months many head for the venues that spring up at La Playa de la Malvarrosa. Many of the clubs and bars here only open between mid July and September. One of the more famous is Vivir Sin Dormir (Paseo Neptuno), which translates literally as, To Live Without Sleep! On a warm night dance under the stars at Caballito del Mar (Calle Eugenia Viñes). Admission charged but includes first drink.
Clubs/Discotecas
In the city, Avenida Blasco Ibañez comes alive after 3am as the party crowd make for the big discotecas situated around this area. It's probably fair to say that generally they attract an older, middle class clientele.
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