Really it's both, but if you had to have either one or the other, lower T would definitely be the choice. I believe I read somewhere that DHT>T>E in terms of hormone strength, that one blocks the effects of the other. There's a reason why trans men generally don't have to take estrogen blockers when they go on T shots, usually the T alone can overcome the effects of the E and masculinize them, even though they still have E in their systems, where we have to take T-blockers for the E to do anything.
The widely-reported notion that most people attain a burst of feminization following SRS supports it, because the only thing that changes after SRS is that your T levels hit rock bottom.
The thing is, though, honestly I don't think the difference is that great. My T levels crashed to the ground, all the way down into the basement of the female range (22 pg/dl, average=25-95,) within only 2 months on HRT, and yet it took me a good year and a half before I consistently started seeing a girl in the mirror. Some of my friends whose T still isn't in the female range after over 2 years, they're still hovering around the 150-200 range because their doctors are way more conservative, got way better results way faster than I did. There are also a few who got no results at all no matter where their T levels or E levels were.
HRT is pretty much a crapshoot. You give yourself the best chance of feminizing when your T is as low as possible and E is over at least 100ish, but I don't think it really matters as much as we like to believe it does. If you're pre-programmed to respond to estrogen, you're going to feminize and do it quickly whether or not you're in the "ideal" range or not. Same with those who aren't. I'm starting to think that genetic predisposition is more important in determining the effectiveness of HRT than hormone levels. If you're from a family of more-masculine straight-framed angular-faced women, or women who went through very late puberties, you're probably not going to get boobs or a butt quickly no matter where your hormone levels are at. Likewise, if you're from a family of very feminine round-faced curvy women, or women who went through puberty very early, get ready, you're likely going to feminize and do it quickly.