How can you call current state of the market unstable? It was never more stable then today.
For some time I was thinking that this is actually very good, lots of positive aspects of such stagnation.
As to topic in question, why not both? Trends that fallow the wave patterns, sort of like wave–particle duality in physics.

You meant that the demand is not so great, the worst supply gets the more scarce something becomes and as a result more expensive. Obviously under one condition, that there is demand for it.