When you're working with steel that has been hardened to that degree, you're really best using an abrasive and grinding through the part (I usually use a reinforced cut-off wheel in a Dremel. If I really want to make sure I've got a clean cut, I'll chuck the bolt in an adapter or directly into my drill press, and spin it rather slow.)
Don't go too fast when grinding through the bolt - and I'd suggest a mild cooling air stream, since you have a compressor. If you get the bolt too hot, you'll wreck the temper and heat treat at that area.
If you can get a Sawzall blade with some sort of abrasive (I don't know if something similar is available for your reciprocating saw, but if I've got a load of bolts to shorten, I'll use a RemGrit blade in my saber saw...) that's the way to go.
Using a toothed blade, or a regular metal cutter meant for mild steel, is a good way to spend a lot on saw blades for little result. When cutting anything that's been significantly hardened, you're probably working with a part that is harder than what you're cutting it with. Use abrasive, it's really easier (I've had a Dremel wheel last through cutting a half-dozen bolts. Those bolts will probably go through a half-dozen hacksaw blades. Each.)
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